Annual Report 2012 - Kansas City International Airport

COMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE YEARS ENDED APRIL 30, 2012 AND 2011Kansas City Aviation Department | An Enterprise Fund of theCity of Kansas City, Missouri

COMPREHENSIVE ANNUAL FINANCIAL REPORTFor the years ended April 30, 2012 and 2011For theKansas City Aviation DepartmentAn Enterprise Fund of the City of Kansas City, MissouriPrepared byJohn Green, CPA, Chief Financial OfficerFred J. O’Neill, Finance & Accounting ManagerDanelle J. Harrison, General Ledger ManagerFinance and Accounting Staff

The Director of Aviation (the Director) is responsible for the operation and maintenance of the Department’stwo airport facilities: the Kansas City International Airport (MCI) and the Charles B. Wheeler DowntownAirport (MKC), and a portion of the Richards-Gebaur Intermodal Transportation Facility (formerlyRichards-Gebaur Memorial Airport). The Director is also responsible for department staffing requirementsand operates the department via nineteen divisions. Each division manager is responsible for budgeting andoverseeing the daily operations of his/her respective division. DEPARTMENT OF AVIATIONDIRECTOR:Mark D. VanLoh, A.A.E.DEPUTY DIRECTOR: DIRECTORS:Mark Ian Redhead, D. VanLoh, C.M. A.A.E.Operations & MaintenanceDEPUTY DIRECTORS: Ian Redhead, C.M.John Green, CPAOperations & MaintenanceDavid Graham Long, A.A.E. David Graham Long, A.A.E.Chief Financial Officer Properties & Commercial Properties Development & Commercial DevelopmentJohn Green, CPAIan Redhead, C.M.Chief Financial Officer DIVISION MANAGERS Operations & MaintenanceMark VanLoh, AdministrationFred O’Neill, Finance & AccountingEd Kline, Purchasing & WarehouseDavid Jacobus, Information TechnologyPhilip Muncy, Planning & EngineeringAlicia Williams, Human ResourcesThomas McKenna, MarketingDavid Long, Commercial DevelopmentKaty Sell, Parking ServicesMichael Roper, Downtown Airport (MKC)David Bowen, MCI OperationsChuck Marks, Airport PoliceRich Weems, Field MaintenanceMitch Cox, Fleet MaintenanceCynthia Williams, Facilities-CustodialHenry Linch, Facilities-StructuralShirley Winn, Bus OperationsSabrina Largen, Environmental Mgmt.Veronica Watson-Perkins, Safety

City of Kansas City, Missouri Department of AviationComprehensive Annual Financial ReportYears Ended April 30, 2012 and 2011Table of ContentsIntroductory SectionLetter of Transmittal ............................................................................................................................ ICertificate of Achievement for Excellence in Financial Reporting ................................................. VIIOrganizational Chart ..................................................................................................................... VIIIFinancial SectionIndependent Accountants’ Report on Financial Statementsand Supplementary Information ................................................................................................. A-1Management’s Discussion and Analysis ........................................................................................ A-4Basic Financial StatementsStatements of Net Assets ......................................................................................................... A-17Statements of Revenues, Expenses and Changes in Net Assets .............................................. A-19Statements of Cash Flows ....................................................................................................... A-20Notes to Financial Statements ................................................................................................. A-22Statistical SectionFinancial TrendsSchedule of Historical Net Assets and Cash Flow Information ................................................ B-1Schedule of Historical Revenues and Expenses ........................................................................ B-3Schedule of Statements of Cash Flows ..................................................................................... B-5Schedule of Unrestricted and Restricted Cash and Investments ............................................... B-7Revenue CapacitySchedule of Revenues, Expenses and Changes in Net Assets by Facility ................................ B-9Schedule of Grants .................................................................................................................. B-10Schedule of Highest Paying Customers .................................................................................. B-11Schedule of Most Popular Destinations .................................................................................. B-12Schedule of Non-Stop Destinations ........................................................................................ B-13Schedule of Passenger and Cargo Airlines .............................................................................. B-14Schedule of Airline Service ..................................................................................................... B-15Debt CapacitySchedule of Ratios of Outstanding Debt, Debt Service and Debt Limits ................................ B-17Schedule of Historical General Airport Revenue Bond Debt Service Coverage .................... B-19

Schedule of Annual Passenger Enplanements ......................................................................... B-21Schedule of Monthly Enplanements ........................................................................................ B-22Schedule of Changes in Monthly Enplanements vs. U.S. Domestic MonthlyEnplanements ...................................................................................................................... B-23Schedule of Airlines Market Share ......................................................................................... B-25Schedule of MCI Aircraft Operations ..................................................................................... B-29Schedule of Enplaned Cargo ................................................................................................... B-30Schedule of Commercial Aircraft Landed Weight by Airline ................................................. B-31Schedule of Commercial Aircraft Landings ............................................................................ B-35Schedule of Annual Parking Revenue by Facility ................................................................... B-39Schedule of Historical Airline Cost Per Enplaned Passenger ................................................. B-40Schedule of Total Airport System Revenue and Expenses ..................................................... B-41Schedule of Historical Operating and Maintenance Expenses ................................................ B-43Schedule of Historical Revenues ............................................................................................. B-45Schedule of PFC Revenues ..................................................................................................... B-47Schedule of PFC Bond Sufficiency Covenant ........................................................................ B-48Demographic and Economic InformationSchedule of Population ............................................................................................................ B-49Schedule of Principal Employers ............................................................................................ B-50Operating InformationSchedule of Rates and Charges ............................................................................................... B-51Schedule of Parking Rates ....................................................................................................... B-52Schedule of Facility Information ............................................................................................. B-53Schedule of Operating Expenditures by Division ................................................................... B-54Schedule of Full-Time and Equivalent Employees by Division ............................................. B-58Schedule of Assets Capitalized ............................................................................................... B-59Schedule of Construction in Progress ..................................................................................... B-60Compliance SectionIndependent Accountants’ Report on Compliance with RequirementsApplicable to the Passenger Facility Charge (PFC) Program and onInternal Control Over Compliance and on the Schedule of PFCFunds Collected and Expended .................................................................................................. C-1Passenger Facility Charge (PFC) ProgramSchedule of PFC Funds Collected and Expended ..................................................................... C-3Notes to Schedule of PFC Funds Collected and Expended ....................................................... C-4

INTRODUCTORY SECTIONTHIS SECTION CONTAINS THE FOLLOWING SUBSECTIONS:LETTER OF TRANSMITTALPRESENTATION OF COMPREHENSIVE ANNUAL FINANCIAL REPORT BY THE DIRECTOR OF AVIATIONCERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTINGCERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING PRESENTED BY THEGOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)ORGANIZATIONAL CHARTORGANIZATION OF THE DEPARTMENT OF AVIATION MANAGEMENT

October 25, 2012Honorable Mayor and City Council Members,City of Kansas City, Missouri;Mr. Troy Schulte, City Manager,City of Kansas City, Missouri;Citizens of Kansas City; andFellow Employees:I hereby present this Comprehensive Annual Financial Report (the Report) of the Department ofAviation (the Department) for the City of Kansas City, Missouri (the City).State law requires that all political subdivisions publish an annual report of financial transactions. Thisreport is published to fulfill that requirement for the fiscal year ended April 30, 2012. The independentaccounting firm, BKD, LLP, whose report is included, has issued an unqualified (clean) opinion on theDepartment’s financial statements for the years ended April 30, 2012 and 2011. The independentaccountants’ report is located at the front of the financial section of this report. The independentaccounting firm also conducted an audit of compliance as required by Section 14 of the Code of FederalRegulations (CFR) Part 158, Passenger Facility Charges.This report was prepared by the Finance and Accounting Division of the Department, which is committedto the accurate disclosure of reporting to the City Council and citizens of the City.The financial statements and statistical information contained herein are representations of theDepartment’s management, which bears the responsibility for the accuracy, completeness, and fairness ofthis report. To the best of my knowledge, these representations are accurate in all material respects.INTERNAL CONTROLThe Department’s internal control structure is an important and integral part of its entire accounting system.The current structure in place is designed to provide reasonable, but not absolute, assurance that:1. Assets are safeguarded against loss from unauthorized use or disposition;2. Transactions are executed in accordance with management’s authorization;3. Financial records are reliable for preparing financial statements and maintaining accountability forassets; and4. There is compliance with applicable laws and regulations.I

LONG-TERM FINANCIAL PLANNINGThe Department has two long-term financial goals:1. To diversify more revenue away from aviation-related industries. The majority of theDepartment’s revenue is concentrated on the airline industry. To hedge against any futuredownturns in the airline industry, the Department has diversified its revenue sources into otherindustries. An example of this type of diversification includes the development of land for use inthe warehousing industry by Trammell Crow on the southeast corner of the airfield.2. To increase the percentage of fixed revenue. The Department currently has a far greaterpercentage of variable revenue than fixed revenue, which is favorable in a positive economicenvironment and unfavorable in a negative economic environment. To protect against any futuredeclining economic environments, and when it is financially prudent, the Department will pursuefixed versus variable revenue streams to protect itself. The Ambassador Building, a six-storyoffice building, is an example of a fixed revenue source. Fixed revenues are also being generatedat the Charles B. Wheeler Downtown Airport, by way of 96 newly constructed T-hangars forpersonal aircraft storage.RELEVANT FINANCIAL POLICIESUnder the terms of the various ordinances enacted for the issuance of revenue bonds, the AviationDepartment is required to maintain rates and fees sufficient to pay reasonable and proper operating andmaintenance expenses and scheduled debt service requirements.GRANT MANAGEMENTThe Department has relied heavily on Airport Improvement Program (AIP) grants, sponsored by theDepartment of Transportation, a parent agency of the Federal Aviation Administration, to fund many of itscapital improvement projects. Some of these projects include rehabilitation of airfield lighting, runway andtaxiway rehabilitation, closed circuit television camera upgrades at MCI and eight new GNG busses.Normally, these grants will fund between 75 and 90 percent of the entire project. The remaining portion isfunded by Department funds.MAJOR INITIATIVESMay 2011 - New Emergency Communication System Offers High Tech FlexibilityThe Aviation Department’s emergency notification process was upgraded to a more robust structure.Everbridge Matrix replaced the old pager-based system used by the Airport Communications Center(ACC). Everbridge utilizes a highly-configurable workflow and contact hierarchy based on an incident’stype, location and severity level to alert staff and administrators of issues. Users can receive alerts viaemail, text, voice and other communication channels. Notification to airport responders, which formerlytook more than 20 minutes, now takes less than two minutes so personnel can focus on managing andresponding to the incident, rather than making a series of notifications. The new system also providesintegrated reporting and journaling capabilities for post-incident analysis, risk mitigation and regulatorycompliance.June 2011 - MKC Continues Safety ProjectSome of the oldest portions of Charles B. Wheeler Downtown Airport were removed as part of continuingmodernization efforts by the Aviation Department. Fuel tanks dating back to the 1940s were disassembledand lifted away from the northeast corner of the Downtown Airport. This first phase began the removal ofthe obstructions in the runway protection zone for Runway 1/19 under new Federal AviationAdministration airport design requirements. These fuel tanks were previously utilized by the airlinesuntil they relocated to Kansas City International Airport in 1971 and later used in support of generalIV

aviation operations. The tanks have been a highly recognizable airport landmark for decades, but theirremoval will increase the margin of safety for pilots and improve the appearance of the Broadway Corridorfor visitors and commuters. The final phase will remove six remaining tanks, associated fuel pumpingequipment, utility poles and overhead electrical lines. Genesis Environmental Solutions agreed tounderwrite the cost of the tank removal and provide payment to the Aviation Department for purchase ofthe seven fuel tanks.October 2011 - KCI Airport Viewable on Google MapsThe Aviation Department announced that Kansas City International Airport entered into a partnership withGoogle Maps to feature indoor floor plans of terminal areas on Android mobile devices. The partnership isthe result of continued focus on offering better customer service for tech-savvy, “connected” travelers.With Google Maps, Android platform users can zoom into KCI Airport’s three terminals and automaticallysee detailed floor plans of public areas. Information labels were overlaid to show locations such as airlinegates, restaurants, baggage claims, restrooms and more at the airport. Essentially, the new technologycombines the information of a static directory map with the convenience of Google Maps. The newtechnology will increase convenience for travelers in many ways because physical on-site maps are only infinite locations at KCI and visitors must first find the directories.January 2012 - New Business Moves into Airport Business ParkThe first building at the KCI Intermodal BusinessCentre was completed. Blount International nowoccupies 349,440 square feet in LogisticsCentre I®, a LEED Certified, Class A distribution center situatedon 22.54 acres at KCI Airport. This build-to-suit facility serves as Blount’s national distribution center forits North America operations. Blount International is a leading manufacturer of equipment, accessories andreplacement parts for the global forestry, garden and construction industries. The company sells itsproducts in more than 100 countries around the world. The KCI Intermodal BusinessCentre is an 800-acremaster planned business park located on the KCI Airport campus adjacent to the airfield. Phase I of theproject comprises 182 acres that will support up to 1.8 million square feet of warehouse/distributioncenters, traditional office/warehouses and light manufacturing facilities. Total construction in all phaseswill be approximately 5.4 million square feet and will include air cargo and air freight facilities adjoiningtwo runways at KCI Airport. KCI Intermodal BusinessCentre offers potential tenants economic incentivessuch as Foreign Trade Zone and Missouri Enhanced Enterprise Zone designations. Trammell CrowCompany is developing the complex in a joint venture with Clarion Partners.February 2012 - Airport Restaurants Get Renewed and RefreshedRestaurant operator HMS Host unveiled new dining options for travelers flying through KCI Airport.Terminal C now has Marche’, a French picnic concept kiosk, in the Frontier Airlines departure lounge. AnItalian picnic kiosk, aptly named Pronto, has been introduced in the holdroom for American Airlines. Theformer Delta Air Lines’ Crown Room will soon be a Top of the Crown Grill and open to all Deltapassengers. Terminal B has gained a full service Starbucks and a “Picnic” kiosk inside the SouthwestAirlines security area. Also within Southwest’s gates will be a new “gastropub” called Pork and Pickle ona newly created second floor. California Pizza and Missouri Vineyards will replace Sbarros and the Fly-ByBar, respectively, on the pre-security mezzanine level in Terminal B. Numerous market-style “grab andgo” concessions will be sprinkled throughout all terminals. These offer fresh, seasonal produce plus sushi,gluten-free items, a variety of drinks and coffee from local maker “The Roasterie”. The remaining eateriesare receiving much needed renovations after about 10 years of continual use.March 2012 - KCI Airport Brings New Airline AboardEskimo-themed Alaska Airlines began nonstop daily flights between Kansas City International Airport andSeattle, Washington. Kansas City travelers find this new route extremely convenient for connections toAlaska, British Columbia and the Pacific Northwest.V

AWARDS AND ACKNOWLEDGEMENTSThe Government Finance Officers Association of the United States and Canada (GFOA) awarded aCertificate of Achievement for Excellence in Financial Reporting to the City’s Department of Aviation forits comprehensive annual financial report for the fiscal year ended April 30, 2011. In order to be awarded aCertificate of Achievement, a government must publish an easily readable and efficiently organizedcomprehensive annual financial report. This report must satisfy both generally accepted accountingprinciples and applicable legal requirements.A Certificate of Achievement is valid for a period of one year only. We believe that our currentcomprehensive annual financial report continues to meet the Certificate of Achievement Program’srequirements and we are submitting it to the GFOA to determine its eligibility for another certificate.The production of this report is a cooperative effort of all the divisions within the Aviation Department and,to this end, I extend my appreciation to all divisions and their respective employees. I particularlyrecognize the efforts of the Finance and Accounting Division employees for the preparation of this reportand their endeavor to accurately portray the financial operations of this Department.Lastly, I would like to acknowledge the support of the City of Kansas City, Missouri, its City Council, themembers of the Transportation and Infrastructure Committee, and Mr. Troy Schulte, City Manager.Sincerely,Mark VanLoh, AAEDirector of AviationVI

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ORGANIZATIONAL CHARTVIII

A family of Bald Eagles visits Kansas City International Airport.

FINANCIAL SECTIONTHIS SECTION CONTAINS THE FOLLOWING SUBSECTIONS:INDEPENDENT ACCOUNTANTS’ REPORTOPINION LETTER FROM INDEPENDENT ACCOUNTANTS REGARDING THE FINANCIAL STATEMENTSCONTAINED IN THIS COMPREHENSIVE ANNUAL FINANCIAL REPORTMANAGEMENT’S DISCUSSION AND ANALYSISNARRATIVE ANALYSIS FROM MANAGEMENT DISCUSSING THE CURRENT FISCAL YEAR ACTIVITIESAND THE FINANCIAL STATEMENTS INCLUDED IN THIS COMPREHENSIVE ANNUAL FINANCIAL REPORTFINANCIAL STATEMENTSCOMPARATIVE FINANCIAL REPORTS FOR THE CURRENT AND PRIOR FISCAL YEARS, INCLUDING THESTATEMENTS OF NET ASSETS; STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETSAND STATEMENTS OF CASH FLOWSNOTES TO THE FINANCIAL STATEMENTSSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ADDITIONAL INFORMATION CONCERNING THEDATA REFLECTED IN THE FINANCIAL STATEMENTS

Independent Accountants’ Report on Financial Statementsand Supplementary InformationThe Honorable Mayor andMembers of the City CouncilCity of Kansas City, MissouriWe have audited the accompanying basic financial statements of the City of Kansas City, Missouri (theCity) Airports Fund (the Fund) as of and for the years ended April 30, 2012 and 2011, as listed in thetable of contents. These financial statements are the responsibility of the Fund’s management. Ourresponsibility is to express an opinion on these financial statements based on our audits.We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.As discussed in Note 1 to the financial statements, the financial statements present only the Fund and donot purport to, and do not, present fairly the financial position of the City of Kansas City, Missouri as ofApril 30, 2012 and 2011, and the changes in its financial position for the years then ended in conformitywith accounting principles generally accepted in the United States of America.In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the City of Kansas City, Missouri Airports Fund as of April 30, 2012 and 2011, andthe changes in its financial position and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.Accounting principles generally accepted in the United States of America require that the management’sdiscussion and analysis listed in the table of contents be presented to supplement the basic financialstatements. Such information, although not part of the basic financial statements, is required by theGovernmental Accounting Standards Board, who considers it to be an essential part of financial reportingfor placing the basic financial statements in an appropriate operational, economic or historical context.We have applied certain limited procedures to the required supplementary information in accordance withauditing standards generally accepted in the United States of America, which consisted of inquiries ofmanagement about the methods of preparing the information and comparing the information forconsistency with management’s responses to our inquiries, the basic financial statements and otherknowledge we obtained during our audit of the basic financial statements. We do not express an opinionor provide any assurance on the information because the limited procedures do not provide us withsufficient evidence to express an opinion or provide any assurance.A-1

The Honorable Mayor andMembers of the City CouncilPage 2Our audits were performed for the purpose of forming an opinion on the basic financial statements as awhole. The introductory section and statistical section listed in the table of contents are presented forpurposes of additional analysis and are not a required part of the basic financial statements. Suchinformation has not been subjected to the auditing procedures applied in the audits of the basic financialstatements and, accordingly, we do not express an opinion or provide any assurance on them.Kansas City, MissouriOctober 25, 2012A-2

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City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011This Management’s Discussion and Analysis (MD&A) of the City of KansasCity, Missouri Aviation Department (the Department) provides an introduction andoverview of the Department’s financial statements and activities for the fiscal yearsended April 30, 2012 (FYE12) and April 30, 2011 (FYE11). The Kansas CityAirports Fund is an enterprise fund of the City of Kansas City, Missouri, (the City) andis supported wholly by airport user charges. No general tax fund revenues are used forthe administration, promotion, operation or maintenance of the airports in the system. TheDepartment is charged with the responsibility to operate and maintain the City’s two airports: theKansas City International Airport (MCI) and the Charles B. Wheeler Downtown Airport (MKC).The information contained herein should be considered in conjunction with the financial statementsand notes in order to provide a complete understanding of the financial performance and activitiesthis past year. The City combines the financial operations of the City’s two airports into one set offinancial statements for the entire Department. Approximations are used throughout this MD&A indescribing fluctuations between fiscal years and may not equal actual differences.AIRPORT ACTIVITIES AND HIGHLIGHTSOne of the Department’s leading activityindicators, passenger enplanements, increasedby 5.1% in FYE12. In FYE11, passengerenplanements increased by 0.1%. Theseincreases may indicate that the airport hasreached an inflection point reversing aprevious trend of declining passengerenplanements.The Department’s other leading activityindicator, aircraft landed weight, increased by0.6% in FYE12 after decreasing by 2% in FYE11. This increase may also indicate a reversing of adeclining trend.To a lesser extent, enplaned cargo is also used as an indicator of the Department’s activity.Enplaned cargo decreased by 1.9% in FYE12 after increasing by 1.2% in FYE11.Activity indicators for the past three fiscal years are as follows:April 30,2012 2011 2010Enplanements 5,198,808 4,945,779 4,939,032Landed Weight (000 lbs.) 6,747,497 6,705,619 6,848,740Enplaned Cargo (000 lbs.) 93,038 94,848 93,678A-4

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011OVERVIEW OF THE FINANCIAL STATEMENTSThe accompanying financial statements are prepared on an accrual basis in accordance with U.S.generally accepted accounting principles, as set forth by the Governmental Accounting StandardsBoard (GASB). Revenues and expenses are recognized when earned and incurred, not whenreceived or paid. Capital assets, except land and construction in process, are depreciated over theiruseful lives.The statements of net assets compare the Department’s assets and liabilities, with the differencebetween the two reported as net assets. Over time, increases or decreases in net assets may serve asa useful indicator of the Department’s financial position.The statements of revenues, expenses and changes in net assets present information showing howthe Department’s net assets changed during the year. All changes in net assets are reported as soonas the underlying event giving rise to the change occurs, regardless of the timing of the related cashflows.The statements of cash flows present the change in the Department’s cash and cash equivalentsduring each fiscal year. This information can assist the user of the report in determining how theDepartment financed its activities and how it met its cash needs.The notes to the financial statements provide additional information that is essential to a fullunderstanding of the data in the statements and can be found beginning on page A-22 of this report.FINANCIAL POSITION AND ASSESSMENTSUMMARY OF STATEMENTS OF NET ASSETSAs noted earlier, net assets may serve over time as a useful indicator of the Department’s financialposition. During FYE12, the Department’s net assets increased by approximately $6.5 million.This increase was largely the result of a 6% increase in the Department’s operating revenues duringthe year. During FYE11, the Department’s net assets increased by approximately $19.2 million.This increase was the result of a $19.3 million transfer resulting from the closure of the SpecialFacility Fund. (Please refer to Note 18 for more details on this transfer.)A-5

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011A condensed summary of the Department’s net assets for the last three fiscal years is presentedbelow (in thousands):April 30,2012 2011 2010AssetsCurrent and Other Assets $ 190,659 $ 193,192 $ 174,987Capital Assets, Net 649,399 658,936 678,866Total Assets $ 840,058 $ 852,128 $ 853,853LiabilitiesCurrent and Other Liabilities $ 35,199 $ 34,283 $ 36,965Long-Term Liabilities 285,576 305,088 323,311Total Liabilities 320,775 339,371 360,276Net AssetsInvested in Capital, Net of Debt 355,499 346,051 344,927Restricted 96,776 100,868 75,847Unrestricted 67,008 65,838 72,803Total Net Assets 519,283 512,757 493,577Total Liabilities and Net Assets $ 840,058 $ 852,128 $ 853,853Net assets invested in capital assets, net of the related debt (approximately 68.5% and 67.5% of theDepartment’s net assets at April 30, 2012 and 2011, respectively) represent the Department’sinvestment in capital assets less the related indebtedness outstanding used to acquire those assets.The Department uses these capital assets to provide services to its customers and consequentlythese assets are not available for future spending. Although the Department’s investment in itscapital assets is reported net of related debt, it should be noted that the resources needed to repaythis debt must be provided from other sources, since it is unlikely that the capital assets will beliquidated to pay liabilities.An additional portion of the Department’s net assets (approximately 18.6% and 19.7% of theDepartment’s total net assets at April 30, 2012 and 2011, respectively) represents resources that aresubject to external restrictions on how they may be used. The assets that were transferred from theSpecial Facility Fund were considered restricted, accounting for much of the growth in restrictednet assets during FYE11.The remaining balance of net assets (approximately 12.9% and 12.8% of the Department’s netassets at April 30, 2012 and 2011, respectively) is considered unrestricted and is available for theongoing needs of the Department.A-6

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011SUMMARY OF STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETSAs previously noted, net assets increased in FYE12 by approximately $6.5 million. Operatingrevenues increased by approximately $6.1 million while operating expenses, excludingdepreciation and amortization, decreased by approximately $1.0 million resulting in a $7.1 millionincrease in operating income before depreciation and amortization. A more complete analysis ofthe Department’s operating revenues and expenses is included below. Although depreciation andamortization expense increased by approximately $1.9 million, the Department’s total operatingloss was reduced by $5.2 million or 16.6% from FYE11. Non-operating revenue increased byapproximately $1.3 million largely as a result of increased Passenger Facility and CustomerFacility charge collections. Non-operating expenses remained relatively flat in total and capitalcontributions for the year increased slightly from FYE11.In FYE11, net assets increased by approximately $19.2 million largely as a result of the closing ofthe Special Facility Fund and the resulting $19.3 million non-reciprocal transfer to the departmentrecorded as a Transfer. Operating revenues increased by approximately $4.1 million and operatingexpenses, excluding depreciation and amortization, decreased by approximately $1.1 millionresulting in a $5.2 million increase in operating income before depreciation and amortization.Depreciation and amortization expense declined by approximately $4.5 million or 7.7% as someassets have reached the end of their depreciable lives. The Department’s total operating loss wasreduced by $9.7 million, or 23%, from FYE10. Non-operating revenue remained constant for theyear but non-operating expenses fell by $1.8 million as a result of lower debt service costs. Capitalcontributions were $10.1 million, or 38% lower than the previous year as a result of lowerconstruction activity.A-7

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011Following is a summary of revenues and expenses and changes in net assets for the past three fiscalyears (in thousands):April 30,2012 2011 2010Operating Revenues $ 106,921 $ 100,819 $ 96,738Operating Expenses 77,703 78,723 79,853Operating Income BeforeNon-Cash Operating Expenses 29,218 22,096 16,885Non-Cash Operating Expenses:Depreciation/Amortization 55,626 53,751 58,220Operating Loss (26,408) (31,655) (41,335)Non-Operating Revenue:Earnings Cash/Investments 3,174 3,133 3,171Passenger Facility Charge 20,887 20,454 20,533Customer Facility Charge 6,036 5,675 5,440Operating Grant Revenue 155 265 316Other 899 351 520Total Non-Operating Revenue 31,151 29,878 29,980Non-Operating Expense:Interest 14,091 14,777 16,547Other 1,201 254 276Total Non-Operating Expense 15,292 15,031 16,823Non-Operating Income 15,859 14,847 13,157Loss Before Capital Contributionsand Transfers (10,549) (16,808) (28,178)Capital Contributions 17,075 16,647 26,766Transfers - 19,341 -Increase (Decrease) in Net Assets 6,526 19,180 (1,412)Net Assets, Beginning of Year 512,757 493,577 494,989Net Assets, End of Year $ 519,283 $ 512,757 $ 493,577SUMMARY OF OPERATING REVENUESIn order to understand the revenues presented in this Report, an overview of the Airline Use andLease Agreement (the Agreement) is required to enhance the readers’ knowledge of theinformation presented.This is the third year of a five year agreement, which utilizes the following four airline-specificcost centers: 1) airfield, 2) passenger boarding bridges, 3) terminal aprons, and 4) terminalbuilding. Airlines that have executed an agreement with the airport are referred to as signatoryairlines. Airlines using the airport without an executed agreement are referred to as non-signatoryairlines.A-8

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011The agreement cost centers are used to identify and reallocate airline-specific expenses related tothe leased premises, operations, facilities or functions conducted at the airport by signatory airlines.These cost center expenses are the basis for determining the rate charged to each signatory airline.All non-signatory airlines pay 125 percent of the signatory airline rate. In exchange for this higherrate, non-signatory airlines are not subject to the same terms and conditions as signatory airlines.There are a maximum of three calculations performed under the terms and conditions of theagreement: 1) budgetary calculation, 2) mid-year budgetary adjustment, and 3) settlement. Beforethe start of every fiscal year, a budget is adopted for the operations of the airport. Based on thisadopted budget, rates are calculated for each agreement cost center and used for billing the airlinesfor their airport operations. As the year progresses, the actual results are monitored and comparedto the adopted budget. If there is a significant change in circumstances from the adopted budget, amid-year budgetary adjustment is performed and the cost center rates are adjusted to reflect thechange in circumstances. After the year is completed, a settlement is performed to “true-up” thesignatory airline rates to reflect the actual operating costs of each agreement cost center. There isno settlement calculation performed for the non-signatory airlines.The Department has encountered growth in itsoperating revenue each of the last two years. InFYE12, operating revenue increased byapproximately $6.1 million, or 6.1%. In FYE11,operating revenue increased from the previous yearby approximately $4.1 million, or 4.2%.110,000,000105,000,000100,000,00095,000,000Total Operating RevenuesIn FYE12, revenue from Terminal Fees increased 90,000,000by $1.08 million, or 9.1%, from the prior fiscalFYE08 FYE09 FYE10 FYE11 FYE12year. This increase is the result of a $107 thousand,or 1.2%, increase in Terminal Floor Space revenue; a $162 thousand, or 10%, increase in TerminalApron revenues; and a $809 thousand, or 76.2%, increase in revenues from Passenger BoardingBridges. The increase in Terminal Floor Space revenue and Terminal Apron revenue was theresult of an increase in the terminal and apron rental rates. The increase in revenue from PassengerBoarding Bridges was largely the result of an increase in Passenger Boarding Bridge repair andmaintenance costs that were charged back to the airlines.In FYE11, revenue from Terminal Fees increased by $274 thousand, or 2.4%, from the prior fiscalyear. This increase is the net effect of a $153 thousand, or 1.6%, decrease in Terminal Floor Spacerevenue; a $75 thousand, or 4.4%, decrease in Terminal Apron revenues; and a $502 thousand, or90%, increase in revenues from Passenger Boarding Bridges. The reduction of Terminal FloorSpace revenue and Terminal Apron revenue was largely the result of the transition of one airlinefrom non-signatory to signatory designation. As noted earlier, non-signatory airlines pay 125percent of the signatory rates. The increase in revenue from Passenger Boarding Bridges waslargely the result of a 29% rate increase over the FYE10 settlement rate.A-9

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011Fees associated with the airfield cost center increased $1.93 million, or 13.4%, in FYE12. Landingfees increased by $1.97 million, or 14%. This increase resulted from a combination of an increasein the amount charged for landing fees and increased landed weight. Revenue from fuel flowagefees remained relatively flat, decreasing by $36 thousand. In FYE11, airfield fees increased $414thousand, or 3%. Landing fees increased by $212 thousand, or 1.5%, resulting from a smallincrease in landing fee charges. Revenue from fuel flowage fees increased by $202 thousand, or88%, as a result of increased volume and higher fuel prices.Parking revenue, which is a key revenue source for Kansas City International Airport, increased by$2.8 million, or 6.5% in FYE12. This increase resulted largely from the expansion of thedepartment’s “Park Air Express” operation, a valet parking service. In FYE11, parking revenueincreased by $3.3 million, or 8.3%. This increase resulted from a rate increase that occurred late inthe previous fiscal year.Property rental revenue declined by $1.2 million, or 9%, in FYE12. This decline is primarily theresult of the loss of American Airlines lease revenue at the aircraft maintenance and overhaul base.Property rental revenue in FYE11 showed a decline of $882 thousand, or 6.4%, from FYE10. Themajor reason for this decline was a decrease in utility reimbursement income.Rental car fees increased by $356 thousand, or 3.6% during FYE12 due to an increase in thevolume of rental car usage after remaining relatively flat during FYE11 declining by $77 thousand,or 0.7% from FYE10.Revenue from transportation facility charges, which are fees assessed for each rental car transactionday, increased in FYE12 by $737 thousand, or 18.4%. This increase was primarily the result ofincreased transaction days during the year. In FYE11, revenue from transportation facility chargesincreased by $274 thousand, or 7.4%, resulting from a rate increase from $2.10 to $2.36 pertransaction day.Concession fee revenue increased in FYE12 by $350 thousand, or 11.3%. This increase is a resultof the continued growth in passenger enplanements. In FYE11, concession fee revenue increasedby $214 thousand, or 7.5%. This increase also resulted from an increase in passengerenplanements.A-10

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011Operating revenues for FYE12, FYE11 and FYE10 are itemized as follows (in thousands):April 30,2012 2011 2010Terminal FeesTerminal Floor Space $ 9,310 $ 9,203 $ 9,356Apron 1,785 1,623 1,698Passenger Boarding Bridges 1,870 1,061 559Total Terminal Fees 12,965 11,887 11,613Airfield FeesLanding Fees 15,986 14,017 13,805Fuel Flowage Fees 395 431 229Total Airfield Fees 16,381 14,448 14,034ParkingParking 46,161 43,331 39,995Livery Trip Fees 7 36 65Total Parking 46,168 43,367 40,060Property Rental 11,815 12,984 13,866Rental Car FeesProperty Rental 610 598 587Concession 9,495 9,151 9,239Total Rental Car Fees 10,105 9,749 9,826Transportation Facility Charge 4,748 4,011 3,737ConcessionsFood and Beverage 1,761 1,771 1,704News, Gifts and Merchandise 927 913 837Other 742 397 286In-Flight Food Service 4 3 43Total Concessions 3,434 3,084 2,870Other Operating Revenues 1,305 1,289 732Total Operating Revenues $ 106,921 $ 100,819 $ 96,738A-11

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011SUMMARY OF OPERATING EXPENSESOperating expenses in FYE12 decreased approximately $1.02 million, or 1.3%, from the previousyear. Salaries, wages and employee benefits remained relatively stable, increasing byapproximately $279 thousand, or 1.0%. Contractual services decreased by approximately $1.13million, or 2.5%. This reduction was in part the result of reduced administrative costs and lowerinsurance claims expenses. Commodities expense decreased slightly by approximately $165thousand, or 3.7%, primarily from a reduction in the costs for vehicle replacement parts.81,000,00080,000,00079,000,00078,000,00077,000,00076,000,000Total Operating ExpensesFYE08 FYE09 FYE10 FYE11 FYE12Operating expenses in FYE11 decreased approximately $1.1 million, or 1.4%, from the previousyear. Salaries, wages and employee benefits decreased by approximately $1.9 million, or 6.2%.This reduction occurred largely as a result of a reduction in staffing and an approximate $1 millionreduction in expenses related to other post-employment benefits. Contractual services remainedrelatively flat increasing by $285 thousand, or 0.6%. Commodities expense increased byapproximately $520 thousand, or 13.3%, primarily from a $400 thousand increase in aviation fuelcosts.Operating expenses, excluding depreciation and amortization, for the past three fiscal years areitemized as follows (in thousands):April 30,2012 2011 2010Salaries, Wages and Benefits $ 29,544 $ 29,265 $ 31,200Contractual Services 43,879 45,013 44,728Commodities 4,280 4,445 3,925Total $ 77,703 $ 78,723 $ 79,853A-12

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011AIRLINE RATES AND CHARGESAirline rates and charges (R&Cs) represent the fees received by the Department from the airlinesfor their use of the airport’s facilities and for the privilege of operating at Kansas City InternationalAirport. The calculation of the R&Cs is based on the provisions of the Airline Use and LeaseAgreement (the Agreement). It is important to maintain low airline rates and charges in order toremain cost-competitive.The agreement negotiated between the City and the airlines became effective May 1, 2009 and willexpire April 30, 2014, with the provision for yearly extensions on this agreement. R&Cs aredetermined for each year using budgeted amounts. After six months, the R&Cs may be amendedto conform to year-to-date actual. At the end of each fiscal year, settlement R&Cs are calculatedbased on actual amounts and additional payments may be paid to or received from the signatoryairlines.The rates and charges settlement rates billed (or to be billed) to the airlines for the last three fiscalyears are as follows:April 30,2012 (4) 2011 (1) 2010 (1)Signatory Landing Fee (2) $2.17 $2.17 $2.03Terminal Rental Rate $30.09/sf $31.86/sf $31.11/sfTerminal Apron Rental $225.59/lf $231.78/lf $226.11/lfPassenger Boarding Bridge (3) $2,861/mo $4,202/mo $2,723/mo(1) actual settlement rates(2) per 1,000 lbs. of aircraft landed weight(3) per boarding bridge(4) projected settlement ratesLanding fees and terminal rental rates for non-signatory airlines are assessed at 125 percent of theestablished rates.PASSENGER FACILITY CHARGESPassenger Facility Charges (PFCs) are fees authorized by the Federal Aviation Administration thatare charged to enplaning passengers. The fees are used to finance eligible airport-related projects.Kansas City International Airport is currently authorized at $404.1 million with the current fee setat $4.50 per enplaned passenger. In FYE12, PFC revenue increased by approximately $433thousand, or 2.1%. In FYE11, PFC revenue remained relatively flat decreasing by approximately$78 thousand, or 0.4%. (Please see Note 10 and the Compliance Section of this report foradditional details.) Historical PFC revenue on an accrual basis for the last three fiscal years is asfollows:April 30, 2012 $ 20,887,024April 30, 2011 20,454,358April 30, 2010 20,532,775A-13

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011CUSTOMER FACILITY CHARGESA Customer Facility Charge (CFC) of $3.00 per transaction day on rental cars was implemented onJanuary 1, 2001 to fund the debt service associated with the design, engineering and construction ofthe new consolidated rental car facility. In FYE12, CFC revenues increased $361 thousand, or6.4%. In FYE11, CFC revenues increased $235 thousand, or 4.3%. CFC revenues generallyincrease or decrease with passenger enplanements. CFC revenue earned on an accrual basis for thelast three fiscal years is as follows:April 30, 2012 $ 6,036,072April 30, 2011 5,674,925April 30, 2010 5,439,585CAPITAL CONTRIBUTIONSCapital contributions and capital grant revenues increased approximately $427 thousand, or 2.6%,in FYE12 compared to the $10.1 million decrease in FYE11. Capital improvement projects fundedby grants in FYE12 included the rehabilitation of runways and surveillance equipmentimprovements at the Kansas City International Airport and taxiway rehabilitations at the Charles B.Wheeler Downtown Airport.Capital contributions and capital grant revenue for the last three fiscal years are as follows:April 30,2012 2011 2010AIP 3-29-0040-43 $ - $ - $ 1,561,371AIP 3-29-0040-47 - - 2,764,622AIP 3-29-0040-57 - - 4,668,071AIP 3-29-0040-58 - 683,771 3,462,557AIP 3-29-0040-59 - 321,653 2,509,597AIP 3-29-0040-62 - 5,629,039 1,370,961AIP 3-29-0040-63 - - 1,837,973AIP 3-29-0040-64 - 224,516 -AIP 3-29-0040-65 8,698,987 - -AIP 3-29-0040-66 606,325 - -TSA 3,050,129 906,488 -MODOT 503,200 500,000 -AIP 3-29-0041-17 67,656 383,814 335,909AIP 3-29-0041-18 - - 779,224AIP 3-29-0041-20 - 133,241 7,476,069AIP 3-29-0041-21 309,106 7,864,868 -AIP 3-29-0041-22 3,839,288 - -Total Contributions $ 17,074,691 $ 16,647,390 $ 26,766,354A-14

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011CAPITAL ASSETSNet capital assets decreased in FYE12 by $9.5 million comprising a $45.8 million increase incapital assets net of $55.3 million in depreciation on capital assets. Capital assets purchased orconstructed in FYE12 include the rehabilitation of the terminal chilled water system, rehabilitationof roadways and airfield taxiways, facility improvements, computer equipment upgrades, and thepurchase of vehicles, mowers, and operating equipment. Net capital assets decreased in FYE11 by$19.9 million comprising a $33.2 million increase in capital assets net of $53.1 million indepreciation on capital assets. Capital assets purchased or constructed in FYE11 include thedowntown airport runway safety area, the commerce center development project, the rehabilitationof airfield lighting and the purchase of five buses for the transportation of airport users to theparking facilities. (Please refer to Note 5 for more details.)DEBT ADMINISTRATIONTotal debt outstanding at FYE12 was approximately $294.2 million, a $19.6 million decrease fromthe previous year. This decrease is due to the normal payment of debt service obligations duringthe year. Total debt outstanding at FYE11 was approximately $313.8 million, a $18.6 milliondecrease from the previous year. This decrease was due to the normal payment of debt serviceobligations during the year.The Department had the following additions and deductions from the interest paid on itsoutstanding bonds for the last three fiscal years. (Please refer to Note 8 for more details.)April 30,2012 2011 2010Interest Paid $ 15,007,143 $ 15,961,764 $ 16,918,686Interest Capitalized (525,973) (793,184) -Accrued Interest (138,953) (140,409) (142,023)Amortized Loss 344,081 344,084 431,849Amortized Bond Discount 59,608 59,608 59,608Amortized Premium (658,155) (658,155) (724,634)Fiscal Agent Fees Paid 3,020 3,323 3,465Interest Expense $ 14,090,771 $ 14,777,031 $ 16,546,951A-15

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011REQUEST FOR INFORMATIONThis financial report is designed to provide the Department’s management, investors, creditors andcustomers with a general overview of the Kansas City Airports Fund’s finances and to demonstratethe Department’s accountability for the funds it receives and expends. For additional informationabout this report, please contact the undersigned at Kansas City International Airport, P.O. Box20047, Kansas City, Missouri 64195-0047.This report is respectfully submitted by:John Green, CPAChief Financial OfficerA-16

City of Kansas City, Missouri Department of AviationStatements of Net AssetsApril 30, 2012 and 2011Assets2012 2011Current assetsUnrestricted assetsCash and cash equivalents $ 4,345,014 $ 3,462,960Investments 11,608,132 6,417,348Accounts receivable 2,678,382 5,438,857Allowance for doubtful accounts (597,762) (367,387)Grants receivable 3,237,444 3,444,177Due from other funds 2,365,627 1,872,339Interest receivable 267,392 277,752Prepaid insurance and other assets 473,320 523,043Inventories 789,202 874,547Total unrestricted assets 25,166,751 21,943,636Restricted assetsCash and cash equivalents 5,273,980 4,742,290Investments 15,267,665 9,619,715Accounts receivable 3,197,716 4,712,241Allowance for doubtful accounts - (64,500)Interest receivable 345,316 557,753Total restricted assets 24,084,677 19,567,499Total current assets 49,251,428 41,511,135Non-current assetsInvestmentsUnrestricted 58,004,463 56,905,148Restricted 74,969,133 83,727,886Total investments 132,973,596 140,633,034Capital assetsLand 37,862,553 37,862,553Construction in progress 9,296,498 8,108,811Buildings, infrastructure, equipment 1,325,390,117 1,282,225,4211,372,549,168 1,328,196,785Accumulated depreciation (723,150,417) (669,261,115)Total capital assets 649,398,751 658,935,670Due from other funds 6,148,331 8,429,661Bond issue costs, net of accumulated amortization 2,286,550 2,618,958Total non-current assets 790,807,228 810,617,323Total assets $ 840,058,656 $ 852,128,458See Notes to Financial Statements A-17

City of Kansas City, Missouri Department of AviationStatements of Net AssetsApril 30, 2012 and 2011Liabilities and Net Assets2012 2011Current liabilitiesPayable from unrestricted assetsAccounts and retainages payable $ 8,022,137 $ 6,145,208Accrued payroll, vacation and sick leave 1,209,807 1,024,768Security deposits 227,561 258,621Prepaid lease revenue 2,890,801 3,814,775Accrued claims liability 325,548 509,858Total current liabilities payable from unrestricted assets 12,675,854 11,753,230Payable from restricted assetsAccounts and retainages payable - 547,411Matured bonds and coupons 289,127 299,373Accrued interest and fiscal agent fees 1,988,995 2,127,948Bonds payable, current portion 20,245,000 19,555,000Total current liabilities payable from restricted assets 22,523,122 22,529,732Total current liabilities 35,198,976 34,282,962Non-current liabilitiesAccrued payroll, vacation and sick leave 1,663,151 1,400,646Pension liability 4,244,443 3,278,916Other post employment benefits obligation 4,412,141 4,070,662Accrued claims liability 743,900 1,325,325Bonds payable, net of current portion 274,512,696 295,012,162Total non-current liabilities 285,576,331 305,087,711Total liabilities 320,775,307 339,370,673Net assetsInvested in capital assets, net of related debt 355,499,297 346,051,435RestrictedPrincipal and interest 23,385,500 23,050,916Deferred maintenance and replacement - 750,000Airline operations and maintenance reserve 10,661,000 13,120,550Reserve for law enforcement 74,195 59,229Reserves for construction and debt service 59,401,088 60,643,881Other restricted net assets 3,253,905 3,243,488Total restricted net assets 96,775,688 100,868,064Unrestricted 67,008,364 65,838,286Total net assets 519,283,349 512,757,785Total liabilities and net assets $ 840,058,656 $ 852,128,458See Notes to Financial Statements A-18

City of Kansas City, Missouri Department of AviationStatements of Revenues, Expenses and Changes in Net AssetsYears Ended April 30, 2012 and 20112012 2011Operating RevenuesTerminal and aprons $ 12,964,525 $ 11,887,437Airfield 16,380,975 14,448,246Parking 46,167,682 43,366,827Rental car 10,104,810 9,749,133Transportation facility charges 4,748,178 4,011,223Concessions 3,434,142 3,084,094Property rental 11,815,552 12,983,509Other 1,305,082 1,288,481Total operating revenues 106,920,946 100,818,950Operating ExpensesSalaries, wages and employee benefits 29,543,646 29,265,231Contractual services 43,878,454 45,012,638Commodities 4,280,476 4,445,428Total operating expenses beforedepreciation and amortization 77,702,576 78,723,297Operating Income Before Non-cash Expense 29,218,370 22,095,653Non-cash Operating ExpenseDepreciation 55,293,214 53,418,701Amortization 332,408 332,408Total non-cash operating expense 55,625,622 53,751,109Total Operating Loss (26,407,252) (31,655,456)Non-operating RevenuesEarnings on cash and investments 3,173,787 3,132,695Passenger facility charge 20,887,024 20,454,358Customer facility charge 6,036,072 5,674,925Operating grant revenue 154,660 264,630Other 899,006 351,300Total non-operating revenues 31,150,549 29,877,908Non-operating ExpensesInterest 14,090,771 14,777,031Other 1,201,653 253,827Total non-operating expenses 15,292,424 15,030,858Total non-operating revenues, net 15,858,125 14,847,050Loss Before Capital Contributions and Transfer (10,549,127) (16,808,406)Capital Contributions 17,074,691 16,647,390Transfer in from Special Facility Fund - 19,341,408Change in Net Assets 6,525,564 19,180,392Net Assets, Beginning of Year 512,757,785 493,577,393Net Assets, End of Year $ 519,283,349 $ 512,757,785See Notes to Financial Statements A-19

City of Kansas City, Missouri Department of AviationStatements of Cash FlowsYears Ended April 30, 2012 and 20112012 2011Operating ActivitiesCash received from customers $ 110,016,279 $ 101,133,077Cash paid to employees, including benefits (27,789,096) (27,868,107)Cash paid to suppliers (47,952,358) (50,405,630)Net cash provided by operating activities 34,274,825 22,859,340Noncapital Financing ActivitiesOperating grants 154,660 264,630Payments received on loan to general fund 1,890,042 -Loan to general fund - (10,200,000)Transfer from Special Facility Fund - 12,161,337Net cash provided by noncapital financing activities 2,044,702 2,225,967Capital and Related Financing ActivitiesCapital grants 17,281,424 14,561,083Proceeds from sale of capital assets 89,187 112,385Purchase of capital assets (1,440,130) (4,820,710)Construction of capital assets (43,299,239) (26,172,159)Principal paid on capital debt (19,555,000) (18,645,000)Payments on matured coupons (10,246) -Interest paid on capital debt (15,007,143) (15,961,764)Fiscal agent fees (3,020) (3,323)Passenger facility charges 20,887,024 20,454,358Customer facility charges 6,036,072 5,674,925Net cash used in capital and related financing activities (35,021,071) (24,800,205)Investing ActivitiesInvestment purchases (110,418,540) (135,113,041)Investment maturities and sales 106,839,942 130,745,094Interest received on investments 3,693,886 3,159,895Net cash provided by (used in) investing activities 115,288 (1,208,052)Increase (Decrease) in Cash and Cash Equivalents 1,413,744 (922,950)Cash and Cash Equivalents, Beginning of Year 8,205,250 9,128,200Cash and Cash Equivalents, End of Year $ 9,618,994 $ 8,205,250(Continued)See Notes to Financial Statements A-20

City of Kansas City, Missouri Department of AviationStatements of Cash Flows (Continued)Years Ended April 30, 2012 and 20112012 2011Reconciliation of Cash and Cash Equivalents to theStatements of Net AssetsCash and cash equivalentsUnrestricted $ 4,345,014 $ 3,462,960Restricted 5,273,980 4,742,290Total cash and cash equivalents $ 9,618,994 $ 8,205,250Reconciliation of Operating Loss to Net CashProvided by Operating ActivitiesOperating loss $ (26,407,252) $ (31,655,456)Depreciation and amortization expense 55,625,622 53,751,109Changes in operating assets and liabilitiesReceivables, net 4,050,367 (239,856)Prepaid insurance and other 49,723 244,819Inventories 85,345 (44,312)Accounts payable 837,239 (1,518,743)Accrued payroll, vacation and sick leave 447,544 1,397,125Security deposits (31,060) (44,885)Prepaid lease revenue (923,974) 547,206Accrued claims liability (765,735) 370,672Other assets and liabilities 1,307,006 51,661Net cash provided by operating activities $ 34,274,825 $ 22,859,340Supplemental Cash Flows InformationIncrease (decrease) in fair value of investments $ 399,302 $ (157,410)Transfer of capital assets from Special Facility Fund - 6,431,570See Notes to Financial Statements A-21

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 1:Nature of Operations and Summary of Significant Accounting PoliciesNature of OperationsThe Kansas City Airports Fund (the Fund) is a fund of and owned by the City of Kansas City,Missouri (the City). The Fund is utilized to account for the operations of the City’s two airports,the Kansas City International Airport (MCI) and the Charles B. Wheeler Downtown Airport(MKC). The financial statements present only the Fund and are not intended to present thefinancial position of the City and the changes in its financial position and cash flows for the yearsended, in conformity with U.S. generally accepted accounting principles.Basis of Accounting and PresentationThe City accounts for the Fund as a proprietary enterprise fund. The accompanying financialstatements are prepared on the accrual basis of accounting, wherein revenues are recorded whenearned and expenses are recorded when incurred. The Fund first applies restricted net assets whenan expense or outlay is incurred for purposes for which both restricted and unrestricted net assetsare available.The Fund prepares its financial statements as a business-type activity in conformity with applicablepronouncements of the Governmental Accounting Standards Board (GASB). The Fund has theoption to apply all Financial Accounting Standards Board (FASB) pronouncements that wereissued after November 30, 1989, unless the FASB pronouncement conflicts with or contradicts aGASB pronouncement. The Fund applies all relevant pronouncements of the Financial AccountingStandards Board (FASB) issued on or before November 30, 1989, unless they conflict with orcontradict GASB guidance.Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted inthe United States of America requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dateof the financial statements and the reported amounts of revenues, expenses and other changes in netassets during the reporting period. Actual results could differ from those estimates.Cash EquivalentsThe Fund’s cash and cash equivalents are cash on hand, demand deposits and short-terminvestments with original maturities of three months or less from date of acquisition.InvestmentsThe Fund’s investments are maintained in the City’s pooled investments. All investments arereported at fair value. The fair value of marketable securities is based on quotations that aregenerally obtained from national securities exchanges. Where marketable securities are not listedon an exchange, quotations are obtained from brokerage firms or pricing services.A-22

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Accounts ReceivableAccounts receivable balances are reflected as unrestricted and restricted and are recorded at theinvoiced amount. The allowance for doubtful accounts is the Fund’s best estimate of the probablelosses in the existing accounts receivable balance. Restricted accounts receivable consists ofPassenger Facility Charges and Customer Facility Charges that are either outstanding or have beenaccrued as of April 30, 2012 and 2011.Revenue RecognitionAirfield fees – Based on the landed weight of the aircraft, airfield fees are principally landing feesgenerated from scheduled airlines and nonscheduled airlines, including charters. The fee structureis determined annually based on an agreement between the City and signatory airlines, which takesinto account the Fund’s operating expenses and the total annual landed weight of aircraft. Fuelflowage fees, which are included in airfield fees, comprised 2.4% and 3.0% of the total airfield feesfor the years ended April 30, 2012 and 2011, respectively. Airfield fees are recognized as part ofoperating revenues when the airline-related facilities are utilized.Rents – Terminal and other space rent, parking, car rental rents and concessions are generated fromairlines, parking structures and lots, food, rental cars, fixed base operators and other commercialtenants. Leases for the airlines are based on a cost recovery basis. Rental revenue is recognizedover the life of the respective leases and concession revenue is recognized partially based onreported concession revenue and partially based on minimum rental guarantee.Original Bond Issue Discount, Premium and Deferred Refunding ChargeOriginal bond issue discount, premium and deferred refunding charges on long-term indebtednessare amortized using the straight-line basis over the life of the debt to which it relates.InventoriesInventories, consisting of machine parts, fuel and supplies, are valued at the lower of cost ormarket.Capital AssetsCapital assets are stated at cost and include assets funded by proceeds of revenue and generalobligation bonds, grants and contributions. Normal maintenance and repairs are charged toexpense as incurred. Renewals and betterments are capitalized when placed into service and aredepreciated over the remaining estimated useful lives of the related properties.A-23

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011At the time of retirement or other disposition of properties, the assets and related depreciationaccounts are relieved of the amounts included therein and the resulting gain or loss is recognized.The provision for capitalization and depreciation of capital assets is computed using the straightlinemethod over the following estimated useful lives:Useful LifeCapitalizationThresholdBuilding and building improvements 25 years $ 100,000Runway, aprons and roads 15 years 25,000Equipment 3 - 10 years 5,000Interest costs incurred that relate to the acquisition or construction of capital assets acquired withdebt are capitalized. The amount of interest to be capitalized is calculated by offsetting interestexpense incurred from the date of the borrowing until completion of the project, with interestearned on invested idle debt proceeds over the same period. Interest costs capitalized for the yearsended April 30, 2012 and 2011 was $525,973 and $793,184, respectively.Accounts and Retainages PayableAccounts payable and retainage balances are reflected as unrestricted and restricted. Restrictedaccounts and retainages payable consist of invoices and retainage withheld from constructionpayments that are to be paid from bond proceeds or other restricted assets that were eitheroutstanding or have been accrued as of April 30, 2012 and 2011.Compensated AbsencesUnder the terms of the City’s personnel policy, city employees are granted vacation and sick leavein varying amounts. Vacation is accumulated at an annual rate of 10 to 20 days, depending on theemployee’s length of service. Sick leave is accumulated at the rate of 3.7 hours per two-week payperiod. The maximum amount of vacation that may be carried forward, which is accrued in theFund, is two times the amount earned in a year. Sick leave with pay may be accumulated up to alimit of 3,000 hours. Upon separation from service, employees may convert accrued sick leave atthe ratio of four hours of sick leave to one hour of vacation leave credit. Retiring employees 55years or older with at least 25 years of creditable service; employees who are to receive a line-ofdutydisability pension; employees who qualify for a City pension and retire with a normalretirement, take early retirement at age 60 or thereafter or die are entitled to sick leave credit at therate of two hours of sick leave to one hour of vacation leave credit.A-24

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Prepaid RevenueThe Fund reports prepaid lease revenue on its statements of net assets when revenues have beenreceived but not yet earned. In subsequent periods, when revenue recognition criteria are met, theliability for prepaid lease revenue is removed from the statements of net assets and the revenue isrecognized.Net AssetsNet assets of the Fund are classified in three components. Net assets invested in capital assets, netof related debt, consist of capital assets net of accumulated depreciation and reduced by theoutstanding balances of borrowings used to finance the purchase or construction of those assets.Restricted net assets are noncapital assets that must be used for a particular purpose as specified bycreditors, grantors or donors external to the Fund, including amounts deposited with trustees asrequired by bond indentures, reduced by the outstanding balances of any related borrowings.Unrestricted net assets are remaining assets less remaining liabilities that do not meet the definitionof invested in capital assets, net of related debt or restricted.Operating versus Non-operatingThe Fund distinguishes operating revenues and expenses from non-operating items. Operatingrevenues and expenses generally result from the rental of property or utilization of airport facilitiesand infrastructure. Operating revenues also include the transportation facility charges which areused to operate the consolidated rental car facility transportation system.Non-operating revenues can be broken down into two main sources:Passenger Facility Charges – In 1990, Congress approved the Aviation Safety and CapacityExpansion Act, which authorized domestic airports to impose a passenger facility charge (PFC)on enplaning passengers. PFC’s may be used for airport projects that meet at least one of thefollowing criteria: preserve or enhance safety, security or capacity of the national airtransportation system; reduce noise or mitigate noise impacts resulting from an airport orprovide opportunities for enhanced competition between and/or among carriers.Customer Facility Charges – In January 2001, a customer facility charge user fee of $3.00 perrental day was imposed on each rental of a passenger vehicle by a customer from a rental caragency. These fees are for the purpose of paying a portion of the cost of constructing,equipping, and financing a consolidated rental car facility and for the payment of debt serviceon revenue bonds issued for this project.Contributed CapitalContributions of capital assets received from other entities, including those from other City funds,grants and assistance received from other governmental units for the acquisition of capital assets,are recorded as capital contributions.A-25

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Interfund PaymentsInterfund payments consist primarily of payments to the City’s general fund for administrative,data processing and accounting services, as well as payments for fire operation services. Thesecharges are recorded in the contractual services section of the statements of revenues, expenses andchanges in net assets. A summary of the administrative service charge, fire protection servicecharge and ambulance service charge for the previous two fiscal years are as follows:Administrative Fire Protection AmbulanceService Charge Service Charge Service ChargeApril 30, 2012 $ 4,367,899 $ 2,903,132 $ 484,445April 30, 2011 5,188,123 2,788,671 488,589ReclassificationsCertain reclassifications have been made to the 2011 financial statements to conform to the 2012presentation. The reclassifications had no effect on the changes in financial position.Adoption of New Accounting PronouncementsEffective May 1, 2011, the City adopted GASB Statement No. 54, Fund Balance Reporting andGovernmental Fund Type Definitions. This statement enhances the usefulness of fund balanceinformation by providing clearer fund balance classifications that can be more consistently appliedand by clarifying the existing governmental fund type definitions. This Statement establishes fundbalance classifications that comprise a hierarchy based primarily on the extent to which agovernment is bound to observe constraints imposed upon the use of the resources reported ingovernmental funds.Effective May 1, 2011, the City adopted GASB Statement No. 59, Financial Instruments Omnibus.This statement updates and improves existing standards regarding financial reporting anddisclosure requirements of certain financial instruments and external investment pools for whichsignificant issues have been identified in practice.Adoption of these statements did not have a material impact on the Fund.New Accounting Pronouncements Not AdoptedIn December 2009, the GASB issued Statement No. 57, OPEB Measurements by Agent Employersand Agent Multiple-Employer Plans (GASB Statement No. 57). The objective of this Statement isto address issues related to the use of the alternative measurement method and the frequency andtiming of measurements by employers that participate in agent multiple-employer otherpostemployment benefit (OPEB) plans (that is, agent employers). The City will implement GASBStatement No. 57 beginning with the year ending April 30, 2013.A-26

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011In November 2010, the GASB issued Statement No. 60, Accounting, and Financial Reporting forService Concession Arrangements (GASB Statement No. 60). The objective of this Statement is toimprove financial reporting by addressing issues related to service concession arrangements(SCAs). This Statement will improve consistency in reporting these types of arrangements, therebyenhancing the comparability of the accounting and financial reporting of such arrangements amongstate and local governments. The City will implement GASB Statement No. 60 beginning with theyear ending April 30, 2013.In November 2010, the GASB issued Statement No. 61, The Financial Reporting Entity:Omnibus—an amendment of GASB Statements No. 14 and No. 34 (GASB Statement No. 61). Theobjective of this Statement is to improve financial reporting for a governmental financial reportingentity. This Statement modifies certain requirements for inclusion of component units in thefinancial reporting entity. This Statement also amends the criteria for reporting component units asif they were part of the primary government (that is, blending) in certain circumstances. ThisStatement also clarifies the reporting of equity interests in legally separate organizations. Itrequires a primary government to report its equity interest in a component unit as an asset. TheCity will implement GASB Statement No. 61 beginning with the year ending April 30, 2014.In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred Outflows ofResources, Deferred Inflows of Resources, and Net Position (GASB Statement No. 63). ThisStatement provides financial reporting guidance for deferred outflows of resources and deferredinflows of resources. Concepts Statement No. 4, Elements of Financial Statements, introduced anddefined those elements as a consumption of net assets by the government that is applicable to afuture reporting period, and an acquisition of net assets by the government that is applicable to afuture reporting period, respectively. The City will implement GASB Statement No. 63 beginningwith the year ending April 30, 2013.In June 2011, the GASB issued Statement No. 64, Derivative Instruments: Application of HedgeAccounting Termination Provisions—an amendment of GASB Statement No. 53 (GASB StatementNo. 64). The objective of this Statement is to clarify whether an effective hedging relationshipcontinues after the replacement of an interest rate swap counterparty or swap counterparty’s creditsupport provider. This Statement sets forth criteria that establish when the effective hedgingrelationship continues and hedge accounting should continue to be applied. The City willimplement GASB Statement No. 64 beginning with the year ending April 30, 2013.In March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets andLiabilities (GASB Statement No. 65). This Statement establishes accounting and financialreporting standards that reclassify, as deferred outflows of resources or deferred inflows ofresources, certain items that were previously reported as assets and liabilities and recognizes, asoutflows of resources or inflows of resources, certain items that were previously reported as assetsand liabilities. The City will implement GASB Statement No. 65 beginning with the year endingApril 30, 2014.A-27

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011In March 2012, the GASB issued Statement No. 66, Technical Corrections—2012—an amendmentof GASB Statements No. 10 and No. 62 (GASB Statement No. 66). The objective of this Statementis to improve accounting and financial reporting for a governmental financial reporting entity byresolving conflicting guidance that resulted from the issuance of two pronouncements, StatementsNo. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62,Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30,1989 FASB and AICPA Pronouncements. The City will implement GASB Statement No. 66beginning with the year ending April 30, 2014.In June 2012, the GASB issued Statement No. 67, Financial Reporting for Pension Plans—anamendment of GASB Statement No. 25 (GASB Statement No. 67). The objective of this Statementis to improve financial reporting by state and local governmental pension plans. This Statementresults from a comprehensive review of the effectiveness of existing standards of accounting andfinancial reporting for pensions with regard to providing decision-useful information, supportingassessments of accountability and interperiod equity, and creating additional transparency.This Statement replaces the requirements of Statements No. 25, Financial Reporting for DefinedBenefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 50, PensionDisclosures, as they relate to pension plans that are administered through trusts or equivalentarrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements ofStatements 25 and 50 remain applicable to pension plans that are not administered through trustscovered by the scope of this Statement and to defined contribution plans that providepostemployment benefits other than pensions. The City will implement GASB Statement No. 67beginning with the year ending April 30, 2015.In June 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting forPensions—an amendment of GASB Statement No. 27 (GASB Statement No. 68). The primaryobjective of this Statement is to improve accounting and financial reporting by state and localgovernments for pensions. It also improves information provided by state and local governmentalemployers about financial support for pensions that is provided by other entities. This Statementresults from a comprehensive review of the effectiveness of existing standards of accounting andfinancial reporting for pensions with regard to providing decision-useful information, supportingassessments of accountability and interperiod equity, and creating additional transparency.This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by Stateand Local Governmental Employers, as well as the requirements of Statement No. 50, PensionDisclosures, as they relate to pensions that are provided through pension plans administered astrusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria.The requirements of Statements 27 and 50 remain applicable for pensions that are not covered bythe scope of this Statement. The City will implement GASB Statement No. 68 beginning with theyear ending April 30, 2016.A-28

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 2:Deposits and InvestmentsDepositsThe City maintains a cash and investment pool that is available for use by all funds. The pool iscomprised of demand and time deposits, repurchase agreements and other investments withmaturities of less than five years. As of April 30, 2012 and 2011, the carrying amount (book value)of the City’s deposits, including certificates of deposit and the collateralized money marketaccount, was approximately $43,534,000 and $39,099,000, respectively, which was covered byfederal depository insurance or by collateral held by the City’s agents under joint custodyagreements in accordance with the City’s administrative code. The Fund’s allocation of depositswas $9,618,994 and $8,205,250 at April 30, 2012 and 2011, respectively.Investments – Pooled and Non-PooledThe City is empowered by City Charter to invest in the following types of securities:1. United States Treasury Securities (Bills, Notes, Bonds and Strips). The City may investin obligations of the United States government for which the full faith and credit of theUnited States are pledged for the payment of principal and interest.2. United States Agency/GSE Securities. The City of Kansas City, Missouri may invest inobligations issued or guaranteed by any agency of the United States Government and inobligations issued by any government sponsored enterprise (GSE), which have a liquidmarket and a readily determinable market value that are described as follows:a. U.S. Government Agency Coupon and Zero Coupon Securities.b. U.S. Govt. Agency Callable Securities. Restricted to securities callable at par only.c. U.S. Govt. Agency Step-Up Securities. The coupon rate is fixed for an initial term.At coupon date, the coupon rate rises to a new, higher fixed interest rate.d. U.S. Govt. Agency Floating Rate Securities. Restricted to coupons with no interimcaps that reset at least quarterly and that float off of only one index.e. U.S. Govt. Agency Mortgage-Backed Securities (MBS, CMO, Pass-Thru Securities).Restricted to securities with final maturities of five (5) years or less or have the finalprojected payment no greater than four (4) years when analyzed in a +300 basis pointinterest rate environment. Restricted to obligations of FNMA, FHLB, FHLMC andGNMA only.A-29

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 20113. Repurchase Agreements. The City may invest in contractual agreements between theCity and commercial banks or primary government securities dealers. The Bond MarketAssociation’s guidelines for the Master Repurchase Agreement will be used and willgovern all repurchase agreement transactions. All repurchase agreement transactions willbe either physical delivery or tri-party.4. Bankers’ Acceptances. The City may invest in bankers’ acceptances issued by domesticcommercial banks possessing the highest rating issued by Moody’s Investor Services,Inc. or Standard & Poor’s Corporation.5. Commercial Paper. The City may invest in commercial paper issued by domesticcorporations, which has received the highest rating issued by Moody’s Investor Services,Inc. or Standard & Poor’s Corporation. Eligible paper is further limited to issuingcorporations that have total assets in excess of five hundred million dollars($500,000,000) and are not listed on Credit Watch with negative implications by anynationally recognized rating agency at the time of purchase. In addition, the City’sportfolio may not contain commercial paper of any one corporation, the total value ofwhich exceeds 2% of the City’s aggregate investment portfolio.6. Any full faith and credit obligations of the State of Missouri rated at least A or A2 byStandard & Poor’s or Moody’s.7. Any full faith and credit obligations of any county in which the city is located rated atleast AA or Aa2 by Standard & Poor’s or Moody’s.8. Any full faith and credit obligations of any school district in Kansas City, Missouri ratedat least AA or Aa2 by Standard & Poor’s or Moody’s.9. Any full faith and credit obligations or revenue bonds of the City of Kansas City,Missouri rated at least AA or Aa2 by Standard & Poor’s or Moody’s.10. Any municipal obligation as defined in (6), (7), (8) or (9) that is not rated but either prerefundedor escrowed to maturity with U.S. Treasury Securities as to both principal andinterest.Interest Rate RiskInterest rate risk is the risk that the fair value of the City’s investments will decrease as a result ofan increase in interest rates. As a means of limiting its exposure to fair value losses arising fromrising interest rates, the City’s investment policy limits the final maturity on any security owned toa maximum of five years. In addition, the City compares the weighted average maturity of itsportfolio to the weighted average maturity of the Merrill Lynch 1-3 year Government/Agencyindex, and relative to the index, may decrease the weighted average maturity of the portfolio duringperiods of rising interest rates or increase it during periods of declining rates.A-30

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011As of April 30, 2012, the City had the following investments and maturities (amounts are inthousands):Investment Maturities (in Years)Fair Less WeightedInvestment Type Value Than 1 1 – 2 2 – 3 3 – 5 AveragePooled investmentsMunicipal securities $ 2,072 $ 2,072 $ - $ - $ - 0.76U.S. Treasury bills 19,998 19,998 - - - 0.12U.S. Treasury notes/bonds 138,667 65,578 31,005 31,664 10,420 1.49U.S. Agency discounts 4,994 4,994 - - - 0.76U.S. Agencies – noncallable 401,250 151,140 131,965 13,455 104,690 1.78U.S. Agencies – callable 105,341 45,215 30,165 9,999 19,962 1.80Mortgage backed agency 9,513 9,513 - - - 0.41Total pooled 681,835 298,510 193,135 55,118 135,072 1.59Non-pooled investmentsU.S. Agencies – noncallable 219,759 77,734 109,561 24,540 7,924 1.35U.S. Agencies – callable 53,155 46,635 - 3,001 3,519 0.70Total non-pooled 272,914 124,369 109,561 27,541 11,443 1.22$ 954,749 $ 422,879 $ 302,696 $ 82,659 $ 146,515 1.53The Fund’s allocation of pooled and non-pooled investments as of April 30, 2012 was$158,844,583 and $1,004,810, respectively.As of April 30, 2011, the City had the following investments and maturities (amounts are inthousands):Investment Maturities (in Years)Fair Less WeightedInvestment Type Value Than 1 1 – 2 2 – 3 3 – 5 AveragePooled investmentsU.S. Treasury notes/bonds $ 134,946 $ 53,219 $ 10,027 $ 30,417 $ 41,283 2.13U.S. Agency discounts 22,995 22,995 - - - 0.27U.S. Agencies – noncallable 404,039 102,434 148,354 122,854 30,397 1.75U.S. Agencies – callable 127,249 53,096 5,092 - 69,061 2.66Total pooled 689,229 231,744 163,473 153,271 140,741 1.88Non-pooled investmentsU.S. Agency discounts 3,249 3,249 - - - 0.33U.S. Agencies – noncallable 73,878 56,393 9,872 - 7,613 1.07U.S. Agencies – callable 19,190 11,724 2,030 - 5,436 1.68Total non-pooled 96,317 71,366 11,902 - 13,049 1.17$ 785,546 $ 303,110 $ 175,375 $ 153,271 $ 153,790 1.80A-31

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011The Fund’s allocation of pooled and non-pooled investments as of April 30, 2011 was$155,620,133 and $1,049,964, respectively.Callable Agency Securities. The City actively monitors its callable bond portfolio with respect toprobability of call relative to market rates of interest. As of April 30, 2012 and 2011, the total fairvalue of the City’s callable bond portfolio (pooled and non-pooled) is $158,495,887 and$146,438,810, respectively.Mortgage-Backed Securities. The City has invested in a collateralized mortgage obligationsecurity issued by the Federal National Mortgage Association (FNMA). Details of that security areas follows:FNR 2006-17 A, $100,000,000 original par value. The security has a fixed coupon rate of5.50% and pays principal and interest monthly. The security was purchased on January 12,2012, and although it has a stated final maturity of April 25, 2033, the security is the firsttranche that began receiving principal payments. Based on current prepayment speeds usingindustry-standard modeling, the City’s principal amount should be fully retired by April 30,2013. At April 30, 2012, the security had a remaining face value of $9,425,782, a book valueof $9,613,931, and a fair market value of $9,514,196.Credit RiskCredit risk is the risk that the City will not recover its investments due to the inability of thecounterparty to fulfill its obligation. In order to prevent over concentration by investment type andthereby mitigate credit risk, the City’s Investment Policy provides for diversification of theportfolio by investment type as follows:Investment TypeMaximumU.S. Treasury Securities and Government Guaranteed Securities 100%Collateralized Time and Demand Deposits 100%U.S. Government Agency and GSE Securities 80%Collateralized Repurchase Agreements 50%U.S. Agency Callable Securities 30%Commercial Paper 30%Bankers Acceptances 30%Qualified Municipal Obligations 10%A-32

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011As of April 30, 2012, the City had the following pooled and non-pooled investment balances whichare rated by both Moody’s and Standard & Poor’s (amounts are in thousands):FairValueMoody’s/S&P RatingsU.S. Treasury securities $ 158,665 Aaa/AA+U.S. Agency securities 794,012 Aaa/AA+Municipal obligations 2,072 Aa2/AA$ 954,749As of April 30, 2011, the City had the following pooled and non-pooled investment balances whichare rated by both Moody’s and Standard & Poor’s (amounts are in thousands):FairValueMoody’s/S&P RatingsU.S. Treasury securities $ 134,946 Aaa/AAAU.S. Agency securities 650,600 Aaa/AAA$ 785,546Custodial Credit RiskCustodial credit risk is the risk that, in the event of the failure of the counterparty, the City will notbe able to recover the value of its deposits, investments or collateral securities that are in thepossession of an outside party (i.e., the City’s safekeeping institution).The City’s investment policy requires that all funds on deposit with any financial institution besecured with collateral securities in an amount equal to at least 102 percent of the deposit less anyamount insured by the Federal Deposit Insurance Corporation (FDIC), or any other governmentalagency performing a similar function. As of April 30, 2012 and 2011, all deposits were adequatelyand fully collateralized.The City’s investment policy requires that all investment securities be held in the City’s name inthe City’s safekeeping account at its safekeeping institution, thereby mitigating custodial creditrisk. As of April 30, 2012 and 2011, all investment securities were in the City’s name in the City’ssafekeeping accounts at its safekeeping institutions. In addition, all collateral securities were in theCity’s joint custody account(s) at the Federal Reserve Bank and were either U.S. Treasury (U.S.Government guaranteed) or U.S. Agency (Aaa/AAA rated) obligations with the exception of anIrrevocable Letter of Credit issued in the City’s favor by the Federal Home Loan Bank in theamount of $50,000,000 at April 30, 2011 to secure the City’s deposits at Commerce Bank. Theoriginal Letter of Credit was safe kept in the City’s cash vault in the Cash Operations section of theTreasury Division.A-33

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Concentration of Credit RiskAt April 30, 2012, more than 5 percent of the City’s investments are in the following U.S. Agencydiscount note/securities: Federal Farm Credit Bank, Federal Home Loan Bank, Federal HomeLoan Mortgage Corporation and Federal National Mortgage Association. These investments are10%, 24%, 21% and 26%, respectively, of the City’s total investments.At April 30, 2011, more than 5 percent of the City’s investments are in the following U.S. Agencydiscount note/securities: Federal Farm Credit Bank, Federal Home Loan Bank, Federal HomeLoan Mortgage Corporation and Federal National Mortgage Association. These investments are10%, 37%, 12% and 21%, respectively, of the City’s total investments.In the City’s opinion, the debt securities issued by these agencies do not have an explicitgovernment guarantee, but rather an implied guarantee, and therefore the City does not imposelimits as to the concentration of any one agency. However, total agency securities in the portfolioare limited by the investment policy to 80% of the total portfolio value.SummaryThe following is a complete listing of cash and investments held by the Fund at April 30, 2012 and2011:2012 2011Deposits $ 9,618,994 $ 8,205,250Pooled investments 158,844,583 155,620,133Non-pooled investments 1,004,810 1,049,964Total $ 169,468,387 $ 164,875,347The deposits and investments of the Fund at April 30, 2012 and 2011 are reflected in the statementsof net assets as follows:2012 2011Cash and cash equivalents $ 4,345,014 $ 3,462,960Current unrestricted investments 11,608,132 6,417,348Current restricted investments 15,267,665 9,619,715Restricted cash and cash equivalents 5,273,980 4,742,290Non-current unrestricted investments 58,004,463 56,905,148Non-current restricted investments 74,969,133 83,727,886Total $ 169,468,387 $ 164,875,347A-34

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 3:Allowance for Doubtful AccountsChanges in allowance for doubtful accounts for the years ending April 30, 2012 and 2011 are asfollows:Beginning Bad Debt EndingBalance Expensed Write-offs BalanceApril 30, 2012 $ (431,887) $ (1,012,964) $ 847,089 $ (597,762)April 30, 2011 (365,313) (66,574) - (431,887)The balance in the allowance account reflects probable losses in the respective accounts receivablebalances based on an analysis of individual customer accounts. Unrestricted and restrictedallowance balances for April 30, 2012 were $(597,762) and $0, respectively; unrestricted andrestricted allowance balances for April 30, 2011 were $(367,387) and $(64,500), respectively.Note 4:Prepaid ExpensesChanges in prepaid expense for the years ended April 30, 2012 and 2011 are as follows:Beginning Amounts Amounts EndingBalance Prepaid Expensed BalanceApril 30, 2012 $ 523,043 $ 970,098 $ (1,019,821) $ 473,320April 30, 2011 767,862 887,229 (1,132,048) 523,043Prepaid expense balances include prepaid insurance premiums less any monthly amortized expensefor airport and law enforcement liability insurance, property insurance and prepaid deposits.A-35

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 5:Capital AssetsCapital assets activity for the year ended April 30, 2012, is as follows:2012BeginningBalance Additions Disposals TransfersEndingBalanceCapital assets not being depreciatedLand $ 37,862,553 $ - $ - $ - $ 37,862,553Construction in progress 8,108,811 44,317,491 - (43,129,804) 9,296,498Total 45,971,364 44,317,491 - (43,129,804) 47,159,051Other capital assetsBuildings 650,350,948 - - 5,687,132 656,038,080Infrastructure 536,333,753 - - 37,442,672 573,776,425Equipment 95,540,720 1,438,804 (1,403,912) - 95,575,612Total 1,282,225,421 1,438,804 (1,403,912) 43,129,804 1,325,390,117Less accumulated depreciationBuildings 248,994,728 24,243,353 - - 273,238,081Infrastructure 333,039,731 27,132,157 - - 360,171,888Equipment 87,226,656 3,917,704 (1,403,912) - 89,740,448Total 669,261,115 55,293,214 (1,403,912) - 723,150,417Other capital assets, net 612,964,306 (53,854,410) - 43,129,804 602,239,700Total capital assets $ 658,935,670 $ (9,536,919) $ - $ - $ 649,398,751A-36

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Capital assets activity for the year ended April 30, 2011, is as follows:2011BeginningBalance Additions Disposals TransfersEndingBalanceCapital assets not being depreciatedLand $ 37,861,553 $ 1,000 $ - $ - $ 37,862,553Construction in progress 32,927,911 25,807,546 (420,500) (50,206,146) 8,108,811Total 70,789,464 25,808,546 (420,500) (50,206,146) 45,971,364Other capital assetsBuildings 643,065,592 4,405,086 - 2,880,270 650,350,948Infrastructure 489,007,877 - - 47,325,876 536,333,753Equipment 92,067,346 4,169,072 (695,698) - 95,540,720Total 1,224,140,815 8,574,158 (695,698) 50,206,146 1,282,225,421Less accumulated depreciationBuildings 224,456,949 24,537,779 - - 248,994,728Infrastructure 308,573,851 24,465,880 - - 333,039,731Equipment 83,033,798 4,888,556 (695,698) - 87,226,656Total 616,064,598 53,892,215 (695,698) - 669,261,115Other capital assets, net 608,076,217 (45,318,057) - 50,206,146 612,964,306Total capital assets $ 678,865,681 $(19,509,511) $ (420,500) $ - $ 658,935,670Note 6:Bond Issue CostsCosts associated with the issuance of bonds are amortized over the life of their respective bonds.Issue costs and associated amortization of these costs at April 30, 2012 and 2011 are as follows:Balance at Additions/ Balance atApril 30, 2011 Amortization Refunded Retired April 30, 2012Bond issue costs $ 4,945,770 $ - $ - $ - $ 4,945,770Accumulated amortization (2,326,812) (332,408) - - (2,659,220)Net bond issue costs $ 2,618,958 $ (332,408) $ - $ - $ 2,286,550Balance at Additions/ Balance atApril 30, 2010 Amortization Refunded Retired April 30, 2011Bond issue costs $ 4,945,770 $ - $ - $ - $ 4,945,770Accumulated amortization (1,994,404) (332,408) - - (2,326,812)Net bond issue costs $ 2,951,366 $ (332,408) $ - $ - $ 2,618,958A-37

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 7:Claims LiabilityThe Fund is exposed to various risks of loss related to torts; theft, damage and destruction of assets;errors and omissions; injuries to employees and natural disasters. The Fund participates in theCity’s self-insurance programs for workers’ compensation and excess liability for auto. The Cityhas purchased insurance to limit the exposure of workers’ compensation claims to $1,000,000 peroccurrence for all claims occurring prior to fiscal year 1997, $500,000 for all claims originating infiscal year 1997, $400,000 for all claims originating in fiscal year 1998, $2,000,000 for all claimsoriginating in fiscal years 2003 through 2007, and $1,000,000 for all claims originating thereafter.The City’s excess liability policy covers torts, which are not barred by sovereign immunity. Thepolicy has a $2,600,000 retention and a $5,000,000 loss limit. Current sovereign tort immunitystatutes and law limit general liability and automobile claims exposure to a maximum of $378,814per person and $2,525,423 per occurrence. Settled claims have not exceeded the self-insuranceretention in any of the past three fiscal years.The Fund also maintains commercial insurance coverage for those areas not covered by the City’sself-insurance programs, such as general liability, property, law enforcement and the Fund’sportion of the City-wide auto policy. Settled claims have not exceeded commercial insurancecoverage for the past three years.All funds of the City participate in the program and make payments based on estimates of amountsneeded to pay prior and current year claims. The claims liability for the Fund includes an estimateof claims incurred but not reported (IBNR), which was determined based upon historical claimsexperience.Activity in the Fund’s claims liability for the years ended April 30, 2012 and 2011 is summarizedas follows:Change inBeginning Estimate/ Ending CurrentBalance Additions Deductions Balance PortionApril 30, 2012 $ 1,835,183 $ (441,626) $ (324,109) $ 1,069,448 $ 325,548April 30, 2011 1,464,511 944,022 (573,350) 1,835,183 509,858A-38

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 8:Bonds Outstanding and Restricted AssetsBonds OutstandingThe following is a summary of bonds outstanding as of April 30, 2012 and 2011:Coupon Original Yield Final Balance BalanceSeries Type Range (%) Issuance Range (%) Maturity April 30, 2012 April 30, 20112001 PFC 5.00 - 5.00 140,000,000 3.23 - 5.32 April 2026 $ 98,940,000 $ 103,815,0002003A GARB 3.60 - 5.75 76,955,000 2.75 - 4.75 September 2027 66,415,000 69,255,0002003B GARB 4.25 - 5.375 53,055,000 4.12 - 4.29 September 2018 53,055,000 53,055,0002004E GARB 3.00 - 5.25 25,835,000 2.00 - 4.27 September 2012 7,025,000 15,065,0002005C CFC 5.00 - 5.25 57,020,000 4.25 - 5.40 September 2020 40,670,000 44,220,0002008A GARB 4.00 - 5.00 28,580,000 2.65 - 3.81 September 2014 28,095,000 28,345,000294,200,000 313,755,000AddPremiums 1,992,907 2,651,062LessCurrent portion (20,245,000) (19,555,000)Deferred charge on refunding (623,176) (967,257)Discount (812,035) (871,643)Non current portion $ 274,512,696 $ 295,012,162A-39

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Changes in bonds payable for the years ending April 30, 2012 and 2011 are as follows:Balance atBalance atApril 30, 2011 Additions Reductions April 30, 2012Bonds payable $ 313,755,000 $ - $ (19,555,000) $ 294,200,000LessUnamortized bond discount (871,643) - 59,608 (812,035)Deferred charge on refunding (967,257) - 344,081 (623,176)AddUnamortized bond premium 2,651,062 - (658,155) 1,992,907Total bonds payable $ 314,567,162 $ - $ (19,809,466) $ 294,757,696Balance atBalance atApril 30, 2010 Additions Reductions April 30, 2011Bonds payable $ 332,400,000 $ - $ (18,645,000) $ 313,755,000LessUnamortized bond discount (931,251) - 59,608 (871,643)Deferred charge on refunding (1,311,341) - 344,084 (967,257)AddUnamortized bond premium 3,309,217 - (658,155) 2,651,062Total bonds payable $ 333,466,625 $ - $ (18,899,463) $ 314,567,162The debt service requirements as of April 30, 2012, are as follows:Year EndingTotal toApril 30, be Paid Principal Interest2013 $ 34,289,864 $ 20,245,000 $ 14,044,8642014 38,219,358 25,270,000 12,949,3582015 38,170,435 26,455,000 11,715,4352016 37,805,831 27,410,000 10,395,8312017 37,693,455 28,710,000 8,983,4552018 - 2022 127,031,649 100,015,000 27,016,6492023 - 2027 69,320,556 60,375,000 8,945,5562028 5,855,850 5,720,000 135,850$ 388,386,998 $ 294,200,000 $ 94,186,998A-40

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Restricted AssetsRestricted accounts and special reserves as required by bond ordinances are reported on theaccompanying statements of net assets as restricted assets with the following balances at April 30,2012 and 2011:Restricted RestrictedAccount Assets Net AssetsBond Reserve for Senior and Subordinate GARBs $ 12,858,000 $ 12,858,000Airline Operations and Maintenance Reserve 10,661,000 10,661,000Principal and Interest for Senior and Subordinate GARBs 12,516,495 10,527,500Drug Enforcement Agency 74,195 74,195Richards-Gebaur Proceeds 15,504 15,504Construction Funds 7,555,240 7,555,240Passenger Facility Charge 38,710,994 38,710,994Customer Facility Charge 4,649,539 4,649,539MDFB Tax Credits 8,469,811 8,469,811Other Restricted 3,197,716 2,908,589Interest Receivable 345,316 345,316Total at April 30, 2012 $ 99,053,810 $ 96,775,688Total at April 30, 2011 $ 103,295,385 $ 100,868,064Under the terms of various ordinances enacted at issuance of revenue bonds, the Fund mustmaintain adequate insurance coverage, rates and fees sufficient to pay reasonable and properoperating and maintenance expenses and scheduled debt service requirements. The ordinances alsoestablish priorities for the allocation of revenues. After meeting normal operating and maintenanceexpenses, all remaining monies are to be allocated to the following accounts in the order listed onthe next page.A-41

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Ordinances establish the priorities for the allocation of revenues and said allocation is to thefollowing accounts in the order listed below:Operation and Maintenance AccountPay all current operation and maintenance expenses Airline O&M Reserve AccountMaintain $1,000,000 to pay for reasonable and properoperating and maintenance expenses of the airportsPrincipal and Interest Accounts for Senior GARBsMaintain funds to meet the maturing senior GARB bondprincipal and interest requirementsBond Reserve Account for Senior GARBsMaintain senior GARB bond reservesPrincipal and Interest Account for Subordinate GARBsMaintain fund to meet the maturing subordinate GARBbond principal and interest requirementsDeferred Maintenance Reserve AccountMaintain funds to pay O&M expenses and unusual orextraordinary maintenance or repairsExtension and Bond Retirement AccountAccumulate all remaining funds in the Airport Fundaccount after the preceding deposits have been made tobe used for any lawful purpose, including payments forcapital purposesA-42

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011At April 30, 2012 and 2011, the Fund was in compliance with the provisions of the ordinancesrelating to the maintenance of restricted accounts and special reserves and coverage requirements.Resources received with purpose restrictions are shown as restricted until the resources are used forthe specified purpose.Pledged RevenuesThe $154,590,000 of outstanding GARB bonds and the interest thereon are payable solely from therevenues derived from airport operations and have a first lien on these airport operation revenues.The GARB bonds were issued to fund all or a portion of the costs of constructing and rehabilitatinggeneral airport facilities, including but not limited to terminal buildings, ramps, runways, taxiwaysand parking facilities. The 2012 and 2011 annual principal and interest payments on these bondswere 16.2% and 17.2% of the total revenues, respectively. The outstanding principal and interestrequirements through maturity total $197,711,625, and it is anticipated the remaining annual debtservice payments will be between 7% and 20% of annual revenues.The $40,670,000 of outstanding CFC bonds and the interest thereon are also payable solely fromthe revenues derived from airport operations, but are junior and subordinate with respect to thepayment of principal and interest from the airport operation revenues and in all other respects to theoutstanding senior GARB bonds. The CFC bonds were issued to fund the costs of constructing aconsolidated rental car facility. The 2012 and 2011 annual principal and interest payments on thesesubordinate bonds, excluding the GARB debt service requirements, were 4.9% and 5.2% of thetotal revenues, respectively. The outstanding principal and interest requirements through maturitytotal $50,748,373 and it is anticipated the remaining annual debt service payments on thesesubordinate bonds will be approximately 5% of annual revenues.The $98,940,000 of outstanding PFC bonds issue and the interest thereon are payable solely fromPFC revenues generated from the operation of the airport. These bonds are not secured by anyother revenues of the airport. The PFC bonds were issued to fund a portion of the costs ofconstructing and rehabilitating the airport terminals. The 2012 and 2011 annual principal andinterest payments on these bonds were 48.2% and 49.4% of the total PFC revenues, respectively.The outstanding principal and interest requirements through maturity total $139,927,000 and it isanticipated the remaining annual debt service payments will be approximately 48% of annual PFCrevenues.Note 9:Legal Debt MarginThe Fund computes its legal debt margin for general obligation bonds ordinary indebtedness andadditional indebtedness based on Sections 26(b) to (c) and 26(d) to (e), respectively, of the StateConstitution of Missouri. The bonds issued for aviation purposes and subject to these financialstatements are not subject to the legal debt margin of those State Constitution sections. Therefore,no legal debt margin computation is made for the bonds issued for aviation purposes.A-43

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Voting Authority for IssuanceOn August 2, 1988, the City held an election at which the qualified voters of the City approved theCity’s issuance of up to $330,000,000 principal amount of airport revenue bonds to be payablesolely from the revenues derived by the City from the operation of its airports, including all futureimprovements and extensions thereto, for the purpose of paying the cost of extending andimproving the airports owned and operated by the City, including runways, terminal buildings andrelated facilities. On August 8, 2000, the voters approved an additional $395,000,000 of airportrevenue bonds for improvements at the airports. As of April 30, 2012, the City has issued$330,000,000 of general airport revenue bonds payable from the 1988 authorization and$154,584,105 of the 2000 authorization. This exhausts the 1988 authorization and leaves$240,415,895 available from the 2000 authorization. The City intends to issue the balance of theauthorization in future financing.Note 10: Passenger Facility ChargesIn 1990, the United States Congress enacted the Aviation Safety and Capacity Expansion Act(“ASCEA”) of 1990, which allows public agencies controlling commercial service airports to chargeeligible enplaning passengers at the airport a $1, $2 or $3 passenger facility charge, or PFC. In 2000,the U.S. Congress passed the Aviation Investment and Reform Act for the 21st Century (“AIR-21”),which allowed airports to levy a PFC of $4.00 or $4.50 per eligible enplaned passenger.The proceeds from PFCs are to be used to finance eligible airport-related projects that preserve orenhance safety, capacity or security of the national air transportation system, reduce noise from anairport that is part of such system or furnish opportunities for enhanced competition between oramong air carriers.Since the ASCEA authorization, the Fund has submitted a total of six applications. As of June2005, approval was granted to increase the PFC collection rate from $3.00 to $4.50 per eligibleenplaning passenger. On January 22, 2010, the Fund received approval from the Federal AviationAdministration (FAA) for new projects increasing collection authority to $404,116,203.Note 11: Use and Lease AgreementsThe Fund has a five-year Use and Lease Agreement (Agreement) with certain air carriers(signatory carriers) serving Kansas City International (KCI) effective through April 30, 2014.Pursuant to the Agreement, signatory air carriers have agreed to a guaranteed minimum amount ofrentals and fees based on expected levels of use of airport facilities. Further, the Agreementprovides the determination for the landing fees and apron, terminal and passenger boarding bridgerents at KCI along with granting certain rights and privileges to air carriers, both passenger andcargo. The Agreement provides for an annual settlement, post fiscal year end close, whereby therates and charges are recalculated using audited financial statements to determine any airlineover/under payment. For settlements completed in fiscal years ended April 30, 2012 and 2011,amounts due from the airlines were $2,174,869 and $1,428,243, respectively.A-44

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Minimum future rentals scheduled to be received on operating leases that have initial or remainingnoncancelable terms in excess of one year for each of the next five years and thereafter at April 30,2012 are as follows:2013 $ 8,988,3972014 8,046,9872015 7,575,7482016 6,471,9632017 6,271,5472018 - 2022 23,718,4962023 - 2027 17,488,2002028 - 2032 8,730,8172033 - 2037 6,413,8902038 - 2042 1,440,7252043 - 2047 620,929$ 95,767,699Note 12: Employee Retirement PlanPlan DescriptionThe board of trustees of the Employees’ Retirement System of the City of Kansas City, Missouri(the Board) administers the Employees’ Retirement System of the City (the Employees’ Plan), acontributory, single-employer, defined benefit public employee retirement plan. The Board isresponsible for establishing and amending plan provisions. The Board issues publicly availablefinancial reports that include financial statements and required supplementary information for theEmployees’ Plan. The financial reports may be obtained by writing to The Retirement Division ofthe City of Kansas City, Missouri, 12th Floor, City Hall, 414 East 12th Street, Kansas City,Missouri 64106 or by calling (816) 513-1928.A-45

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Funding PolicyThe Employees’ Plan’s funding policy provides for periodic employer contributions at actuariallydetermined rates that, expressed as percentages of annual covered payroll, are sufficient toaccumulate sufficient assets to pay benefits when due. The employer contributions are establishedby the Board. Level percentages of payroll employer contribution rates are determined using theindividual entry age normal method.As a condition of participation in the Employees’ Plan, members are required to contribute fourpercent of their salary to the Employees’ Plan. The Fund contributes the balance required to paypensions and maintain the system on an actuarially sound basis.The city-wide pension plan summary for the last three fiscal years is as follows:Fiscal Year Actuarial Value Actuarial Accrued Funded (Unfunded)Ended of Assets Liability Actuarial Liability4/30/2012 $ 806,792,596 $ 1,010,996,133 $ (204,203,537)4/30/2011 749,551,649 994,767,684 (245,216,035)4/30/2010 704,069,429 966,779,322 (262,709,893)A summary of the Fund’s participation in the pension plan based on payroll percentages for theabove fiscal years is as follows:Fiscal Year Annual Pension Percent of APC Net PensionEnded Cost (APC) Contributed Obligation4/30/2012 $ 3,193,630 69.77% $ 4,244,4434/30/2011 3,265,998 66.75% 3,278,9164/30/2010 3,557,452 64.46% 2,193,069A-46

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011The net pension obligation at April 30, 2012 is as follows:CityFundAnnual required contribution (ARC) $ 26,326,555 $ 3,184,200Interest on net pension obligation 2,069,459 245,919Adjustment to annual required contribution (2,002,821) (236,489)Annual pension cost (APC) 26,393,193 3,193,630Contributions madeNet employer contributions (18,421,668) (2,228,103)Change in net pension obligation 7,971,525 965,527Net pension obligation, April 30, 2011 27,592,788 3,278,916Net pension obligation, April 30, 2012 $ 35,564,313 $ 4,244,443Actuarial Methods and AssumptionsIn the May 1, 2011, actuarial valuation, the individual entry age actuarial cost method was used.The actuarial assumptions included a 3.0% inflation rate, a 7.5% investment rate of return (net ofadministrative expenses), a 4.0% projected salary increase for all employees aged 55 or youngerand a 3.0% cost-of-living adjustment rate. The actuarial value of assets was determined usingtechniques that spread the effects of short-term volatility in the market value of investments over afour year period. The unfunded actuarial accrued liability is being amortized as a level percentageof projected payroll on a thirty year basis. The remaining amortization period at April 30, 2012was 26.3 years.Note 13: Postemployment Benefits Other than PensionsPlan DescriptionThe City sponsors a single-employer, defined benefit health care plan that provides health carebenefits to retirees and their dependents, including medical and pharmacy coverage. The Cityrequires the retirees to pay 100% of the same medical premium charged to active participants.Beginning with fiscal year 2011, the City of Kansas City moved to a self-insured health caresystem. The funds collected by retirees for health insurance are deposited in an internal servicefund of the City. The rates being paid by retirees for benefits are typically lower than those forindividual health insurance policies. The difference between these amounts is the implicit ratesubsidy, which is considered Other Post Employment Benefits (OPEB) under GASB 45.A-47

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Retirees and spouses have the same benefits as active employees. Retiree coverage terminates eitherwhen the retiree becomes covered under another employer health plan, or when the retiree reachesMedicare eligibility age which is currently age 65. Spousal coverage is available until the retireebecomes covered under another employer health plan, attains Medicare eligibility age or dies.Funding PolicyGASB 45 does not require funding of the OPEB liability and at this time, the liability for the Cityis unfunded. Contributions are made to the plan on a pay-as-you-go basis.For the year ended April 30, 2012, retirees receiving benefits contributed $5,152,726 for currentpremiums (approximately 68.28% of total aged adjusted premiums based on implied Citycontributions of $2,393,560), through their required contracted amount paid to the Health CareTrust Fund of Kansas City for the plan of the retirees’ choosing. Total age adjusted premiums forthe year were $7,546,286.Annual OPEB Cost and Net OPEB ObligationThe City’s annual OPEB cost is calculated on the annual required contribution (ARC) of theemployer, an amount actuarially determined in accordance with the parameters of GASB Statement45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to covernormal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over aperiod not to exceed thirty years. The following table shows the components of the City’s annualOPEB cost for the year, the amount actually contributed to the plan and changes in the City’s netOPEB obligation.The Employee/Firefighter annual OPEB cost, the percentage of annual OPEB cost contributed tothe plan, and the net OPEB obligation for the last three fiscal years is as follows:Annual OPEB Percentage of Net OPEBFiscal Year End Cost (AOC) AOC Contributed Obligation4/30/12 $ 7,545,185 31.72% $ 60,819,5124/30/11 7,379,701 29.16% 55,667,8864/30/10 21,336,000 15.94% 50,440,023A summary of the Fund’s annual OPEB cost, the percentage of annual OPEB cost contributed tothe plan, and the net OPEB obligation for the above fiscal years is as follows:Annual OPEB Percentage of Net OPEBFiscal Year End Cost (AOC) AOC Contributed Obligation4/30/12 $ 502,428 32.03% $ 4,412,1414/30/11 508,914 29.34% 4,070,6624/30/10 1,575,191 15.89% 3,711,067A-48

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011The net OPEB obligation at April 30, 2012 is as follows:CityFundAnnual required contribution $ 8,383,005 $ 563,693Interest on net OPEB obligation 2,505,055 183,180Adjustment to annual required contribution (3,342,875) (244,445)Annual OPEB cost (expense) 7,545,185 502,428Contributions madeNet employer contributions (2,393,560) (160,949)Increase in net OPEB obligation 5,151,625 341,479Net OPEB obligation, beginning of year 55,667,887 4,070,662Net OPEB obligation, end of year $ 60,819,512 $ 4,412,141Funded Status and Funding ProgressAs of May 1, 2010, the most recent actuarial valuation date, the Plan was 0.0 percent funded. Theactuarial accrued liability for benefits was $76.6 million and the actuarial value of assets was $0,resulting in an unfunded actuarial accrued liability (UAAL) of $76.6 million. The covered payroll(annual payroll of active employees covered by the plan) was $205.9 million, and the ratio ofUAAL to the covered payroll was 37 percent.Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality and the health care cost trend. Amountsdetermined regarding the funded status of the plan and the annual required contributions of theemployer are subject to continual revision as actual results are compared with past expectations andnew estimates are made about the future. A schedule of funding progress is presented in the City’scomprehensive annual financial report as required supplementary information following the notesto the financial statements and presents multi-year trend information over time relative to theactuarial accrued liabilities for benefits.Actuarial Methods and AssumptionsProjections of benefits for financial reporting are based on the substantive plan (the plan asunderstood by the employer and the plan members) and include the types of benefits provided atthe time of each valuation and the historical pattern of sharing of benefit costs between theemployer and plan members to that point. The actuarial methods and assumptions used includetechniques that are designed to reduce the effects of short-term volatility in actuarial accruedliabilities and the actuarial value of assets, consistent with the long-term perspective of thecalculations.A-49

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011In the May 1, 2010 actuarial valuation, the individual entry age actuarial cost method was used.The actuarial assumptions included a 3.0% inflation rate, a 4.5% investment rate of return (net ofadministrative expenses), which is a blended rate of the expected long-term investment returns onplan assets (of which there are none) and on the employer’s own investments calculated based onthe funded level of the plan at the valuation date and an annual health care cost trend rate of 9-10percent annually, reduced by decrements to an ultimate rate of 4.5% after eleven years. Theactuarial value of assets was determined using techniques that spread the effects of short-termvolatility in the market value of investments over a five year period. The UAAL is beingamortized as a level percentage of projected payroll on an open basis. The remaining amortizationperiod at April 30, 2011 was thirty years.The May 1, 2010 actuarial valuation included the following changes in assumptions:1. Medicare eligibility: In the prior valuation, it was assumed that 25% of firefighter retireeshired before 1987 would not be eligible for Medicare. It was determined that this assumptionwas not holding true for the current retirees (all were Medicare eligible). For the currentvaluation, all retirees are assumed to be eligible for Medicare at attainment of age 65.2. Participation and election assumptions: In the prior valuation, it was assumed that 90% ofeligible retirees would elect coverage at retirement and that 100% of those electing wouldelect 2-person coverage. This was determined to be overly conservative for an access onlyplan (a plan where the retiree pays the full blended premium), and was not being observed inthe actual retiree elections. For the current valuation, 50% participation was assumed with85% of males participating electing 2-person coverage and 55% of females participatingelecting 2-person coverage.The plan has also had favorable claims experience during the period since the previous valuation.The premiums charged have been the same for fiscal years 2010 through 2012, while standardmedical trend assumptions are 9-10% per year. This favorable claims experience, along with theassumption changes mentioned above, substantially reduced the plan’s liabilities and annualrequired contribution. The following summarizes the actuarial gain of each of the changesmentioned above for the Plan at the City-wide level (in millions):Removing 25% Medicare ineligible assumption $ 18Changing participation and election assumptions 85Favorable claims experience 41Total $ 144A-50

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 14: Net AssetsInvested in capital assets, net of related debt at April 30, 2012 and 2011 are as follows:2012 2011Capital AssetsLand $ 37,862,553 $ 37,862,553Construction in progress 9,296,498 8,108,811Buildings 656,038,080 650,350,948Infrastructure 573,776,425 536,333,753Equipment 95,575,612 95,540,7201,372,549,168 1,328,196,785Less accumulated depreciation (723,150,417) (669,261,115)Capital assets, net 649,398,751 658,935,670Bond issuance costs, net 2,286,550 2,618,958Total capital related assets 651,685,301 661,554,628Less Related LiabilitiesCapital related liabilities 1,428,308 936,029Current portion, bonds payable 20,245,000 19,555,000Bonds payable, net of premium and discount 274,512,696 295,012,162Total capital related liabilities 296,186,004 315,503,191Invested in Capital Assets, Net of Related Debt $ 355,499,297 $ 346,051,437Restricted net assets at April 30, 2012 and 2011 are as follows:2012 2011Restricted AssetsCash and cash equivalents $ 5,273,980 $ 4,742,290Investments 90,236,798 93,347,601Accounts and interest receivable 3,543,032 5,205,49499,053,810 103,295,385Less Liabilities Payable from Restricted AssetsOther liabilities payable from restricted assets 289,127 299,373Accrued interest and fiscal agent fees 1,988,995 2,127,9482,278,122 2,427,321Restricted Net Assets $ 96,775,688 $ 100,868,064A-51

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 15: Current Economic ConditionsThe current protracted economic decline continues to present governments with difficultcircumstances and challenges, which in some cases have resulted in large declines in the fair valueof investments and other assets, declines in government support and tax revenues, constraints onliquidity and difficulty obtaining financing. The financial statements have been prepared usingvalues and information currently available to the Fund.In addition, given the volatility of current economic conditions, the values of assets and liabilitiesrecorded in the financial statements could change rapidly, resulting in material future adjustmentsin investment values and allowances for accounts receivable that could negatively impact theFund’s ability to maintain sufficient liquidity.Note 16: Commitments and ContingenciesCommitmentsAt April 30, 2012, the City had made purchase commitments, primarily for construction projects,on behalf of the Fund of approximately $43.4 million. These commitments will be funded byexisting resources.LitigationOn December 1, 2009, BBA US Holdings, Inc. (“BBA”) and its subsidiary, Executive Beechcraft,Inc. (“Executive Beechcraft”), filed a petition in the Circuit Court of Jackson County, Missouri,(Case No. 0916CV-36906) against the City and other defendants relating to a transaction involvingBBA’s acquisition of Topeka Aircraft, Inc., (including its subsidiary, Executive Beechcraft, Inc.,operating a fixed base operation at the Charles B. Wheeler Downtown Airport (the “DowntownAirport”)). In its lawsuit, BBA alleges that the City misrepresented certain facts thereby causingBBA to overpay for its purchase of Topeka Aircraft, Inc., in an amount yet to be determined. TheCity denies the allegations and is vigorously contesting BBA’s claim. The City has filedcounterclaims alleging that Executive Beechcraft failed to pay fuel flowage and landing fees owedto the City. As of the date hereof, the City is not able make an estimate of any reasonableprobability of an unfavorable outcome or any range of a possible loss.Government GrantsThe Fund is currently participating in numerous grants from various departments and agencies ofthe federal and state governments. The expenditures of grant proceeds must be for allowable andeligible purposes. Single audits and audits by the granting department or agency may result inrequests for reimbursement of unused grant proceeds or disallowed expenditures. Uponnotification of final approval by the granting department or agency, the grants are consideredclosed.A-52

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011Note 17: Due from Other FundsDuring the year ended April 30, 2011, the Fund transferred $10,200,000 to the City’s general fundto assist with the City’s historical tax increment financing (TIF) liability. This interfund loan is tobe repaid over a five-year period at an interest rate of three percent. Principal payments are dueJuly 1 each year beginning July 1, 2011, with interest payments due on July 1 and January 1 eachyear. This receivable is recorded on the statements of net assets in the current and non-currentsections as due from other funds.Due from other funds at April 30, 2012 and 2011 is as follows:2012 2011CurrentInterest receivable $ 84,297 $ 102,000Principal 2,281,330 1,770,3392,365,627 1,872,339Non-current portionPrincipal 6,148,331 8,429,661$ 8,513,958 $ 10,302,000Note 18: Transfer from Special Facility FundThe Special Facility Fund (a proprietary fund) issued Special Facility Revenue Bond Series 2005Gin August 2005 to pay a portion of the costs incurred in connection with the repair, improvementand rehabilitation of the aircraft maintenance and overhaul base located at Kansas CityInternational Airport. With the amendment of the American Airlines lease agreement, the majorityof these bond proceeds were used by the City to defease the bonds on November 18, 2010 and allremaining assets of the Special Facility Fund were transferred to the Fund to be used along withother available resources to complete the rehabilitation projects at the overhaul base.Assets transferred from the Special Facility Fund include $12,161,337 in cash and investments,$6,431,570 in net capital assets and $748,500 in accumulated accrued accounts receivable.MDFB Tax CreditsA portion of the funds necessary to pay the costs of the overhaul base rehabilitation will beprovided by the Missouri Development Finance Board (MDFB) from proceeds derived from thesale of certain State of Missouri income tax credits. The MDFB has agreed, with certainstipulations, to allow the City to keep the tax credit proceeds previously received by the SpecialFacility Fund. The unused net proceeds were transferred to the Fund to be used along with otheravailable resources to complete the rehabilitation projects at the overhaul base.A-53

City of Kansas City, Missouri Department of AviationNotes to Financial StatementsApril 30, 2012 and 2011CID Sales TaxThe City has established the Kansas City International Airport Community Improvement District(CID), which encompasses the real property owned by the City, which constitutes Kansas CityInternational Airport. The CID board of directors and the City entered into a CooperativeAgreement as of August 1, 2005, to provide certain services for the CID, and to authorize andcollect a one percent sales and use tax on eligible retail sales transactions occurring within theboundaries of the CID. The unused net collections in the Special Facility Fund were transferred tothe Fund and the agreement was amended so that subsequent to the defeasance of the SpecialFacility Revenue Bonds these collections will be deposited in the Fund to continue to be used alongwith other available resources to complete the rehabilitation projects at the overhaul base.A-54

Cows graze at Kansas City International Airport as part of the Fund’s Farm Management Program.

STATISTICAL SECTIONFINANCIAL TREND INFORMATIONTHESE SCHEDULES CONTAIN TREND INFORMATION TO SHOW HOW THE DEPARTMENT’S FINANCIAL PERFORMANCE HAS CHANGED OVER TIME.Schedule of Historical Net Assets and Cash Flows InformationSchedule of Historical Revenues and ExpensesSchedule of Statements of Cash FlowsSchedule of Unrestricted and Restricted Cash and InvestmentsREVENUE CAPACITY INFORMATIONTHESE SCHEDULES CONTAIN INFORMATION TO ASSESS THE DEPARTMENT’S MOST SIGNIFICANT REVENUE SOURCES.Schedule of Revenues, Expenses and Changes in Net Assets by FacilitySchedule of GrantsSchedule of Highest Paying CustomersSchedule of Most Popular DestinationsSchedule of Non-Stop DestinationsSchedule of Passenger and Cargo AirlinesSchedule of Airline ServiceDEBT CAPACITY INFORMATIONTHESE SCHEDULES PRESENT INFORMATION REGARDING THE DEPARTMENT’S CURRENT LEVELS OF OUTSTANDING DEBT AND ITS ABILITY TOISSUE ADDITIONAL DEBT IN THE FUTURE. THE TABLES REPRESENT CONTINUING DISCLOSURE SCHEDULES REQUIRED BY BOND ORDINANCES.Schedule of Ratios of Outstanding Debt, Debt Service and Debt LimitsSchedule of Historical GARB Debt Service CoverageSchedule of Annual Passenger EnplanementsSchedule of Monthly EnplanementsSchedule of Changes in Monthly Enplanements vs. U.S. Domestic Monthly EnplanementsSchedule of Airlines Market ShareSchedule of MCI Aircraft OperationsSchedule of Enplaned CargoSchedule of Commercial Aircraft Landed Weight by AirlineSchedule of Commercial Aircraft LandingsSchedule of Annual Parking Revenue by FacilitySchedule of Historical Airline Cost Per Enplaned PassengerSchedule of Total Airport System Revenue and ExpensesSchedule of Historical Operating and Maintenance ExpensesSchedule of Historical RevenuesSchedule of PFC RevenuesSchedule of PFC Bond Sufficiency CovenantDEMOGRAPHIC AND ECONOMIC INFORMATIONTHESE SCHEDULES OFFER DEMOGRAPHIC AND ECONOMIC INDICATORS TO HELP UNDERSTAND THE ENVIRONMENT WITHIN WHICH THEDEPARTMENT’S FINANCIAL ACTIVITIES TAKE PLACE.Schedule of PopulationSchedule of Principal EmployersOPERATING INFORMATIONTHESE SCHEDULES CONTAIN SERVICE AND INFRASTRUCTURE INFORMATION TO HELP UNDERSTAND HOW THE INFORMATION IN THEDEPARTMENT’S FINANCIAL REPORT RELATES TO THE SERVICES THE DEPARTMENT PROVIDES AND THE ACTIVITIES PERFORMED.Schedule of Rates and ChargesSchedule of Parking RatesSchedule of Facility InformationSchedule of Operating Expenditures by DivisionSchedule of Full-Time and Equivalent Employees by DivisionSchedule of Assets CapitalizedSchedule of Construction in Progress

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Historical Net Assets and Cash Flow InformationFor the Last Ten Fiscal YearsFYE 2003 FYE 2004 FYE 2005Statement of Net AssetsCurrent assets-unrestricted $ 181,503,411 $ 130,027,638 $ 127,418,350Current assets-restricted 156,966,757 116,800,168 134,922,524Non-current investments - - -Non-current capital assets 628,519,098 688,689,883 957,419,659Non-current construction in progress 203,993,645 251,419,111 34,141,629Non-current accumulated depreciation (310,824,361) (339,044,701) (377,674,731)Non-current bond issue costs 3,545,377 3,369,302 4,564,350Non-current due from other funds - - -Total assets $ 863,703,927 $ 851,261,401 $ 880,791,781Current liabilities $ 24,959,258 $ 12,846,116 $ 11,704,215Current liabilities from restricted assets 19,719,614 19,152,546 17,652,267Long-term liabilities 375,206,326 364,279,437 400,557,168Total liabilities 419,885,198 396,278,099 429,913,650Invested in capital assets, net of related debt 235,285,763 271,378,585 283,935,071Restricted net assets 56,830,152 59,359,396 42,686,420Unrestricted net assets 151,702,814 124,245,321 124,256,640Total retained earnings/net assets 443,818,729 454,983,302 450,878,131Total liabilities and net assets $ 863,703,927 $ 851,261,401 $ 880,791,781Cash Flow InformationOperating profit before depreciation/amortization $ 16,920,214 $ 20,162,013 $ 20,447,992Depreciation and amortization 27,292,927 28,610,026 38,937,910Total operating loss $ (10,372,713) $ (8,448,013) $ (18,489,918)Capital contributions $ 9,557,005 $ 3,279,074 $ 5,700,284Capital acquisitions $ 110,379,572 $ 96,872,489 $ 47,018,293B-1

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Historical Net Assets and Cash Flow InformationFor the Last Ten Fiscal YearsFYE 2006 FYE 2007 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012$ 139,861,105 $ 31,608,842 $ 38,123,042 $ 27,311,886 $ 23,444,921 $ 21,943,636 $ 25,166,751107,190,328 17,166,424 31,318,394 16,986,519 17,658,928 19,567,499 24,084,677- 163,485,355 149,484,741 155,537,706 130,932,560 140,633,034 132,973,596977,276,265 1,118,478,414 1,142,318,513 1,192,075,320 1,262,002,368 1,320,087,974 1,363,252,67082,488,938 21,619,021 32,723,518 43,726,101 32,927,911 8,108,811 9,296,498(411,068,019) (463,184,462) (503,049,149) (559,921,887) (616,064,598) (669,261,115) (723,150,417)4,242,900 3,885,351 3,527,803 3,293,250 2,951,366 2,618,958 2,286,550- - - - - 8,429,661 6,148,331$ 899,991,517 $ 893,058,945 $ 894,446,862 $ 879,008,895 $ 853,853,456 $ 852,128,458 $ 840,058,656$ 19,334,408 $ 15,549,860 $ 16,817,658 $ 19,661,438 $ 15,086,730 $ 11,753,230 $ 12,675,85419,813,364 22,222,482 22,929,383 24,836,957 21,877,888 22,529,732 22,523,122386,299,521 374,171,855 357,362,142 339,521,183 323,311,445 305,087,711 285,576,331425,447,293 411,944,197 397,109,183 384,019,578 360,276,063 339,370,673 320,775,307295,181,540 310,259,794 312,854,674 337,911,215 344,926,785 346,051,435 355,499,29761,683,791 60,094,409 74,526,926 62,632,290 75,846,990 100,868,064 96,775,688117,678,893 110,760,545 109,956,079 94,445,812 72,803,618 65,838,286 67,008,364474,544,224 481,114,748 497,337,679 494,989,317 493,577,393 512,757,785 519,283,349$ 899,991,517 $ 893,058,945 $ 894,446,862 $ 879,008,895 $ 853,853,456 $ 852,128,458 $ 840,058,656$ 20,324,177 $ 23,972,740 $ 26,169,375 $ 23,401,633 $ 16,885,227 $ 22,095,653 $ 29,218,37049,621,125 53,944,639 58,029,996 60,264,929 58,220,226 53,751,109 55,625,622$ (29,296,948) $ (29,971,899) $ (31,860,621) $ (36,863,296) $ (41,334,999) $ (31,655,456) $ (26,407,252)$ 33,094,115 $ 18,567,862 $ 18,282,279 $ 17,744,515 $ 29,407,470 $ 14,561,083 $ 17,281,424$ 85,349,215 $ 81,866,913 $ 60,600,862 $ 61,536,229 $ 63,927,969 $ 32,167,588 $ 44,739,369B-2

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Historical Revenues and ExpensesFor the Last Ten Fiscal YearsFYE 2003 FYE 2004 FYE 2005Operating RevenueTerminal and aprons $ 9,573,569 $ 9,302,622 $ 9,356,744Airfield 10,204,660 10,228,110 10,038,968Parking 31,869,141 33,293,350 34,609,225Rental car 7,290,691 7,864,913 7,829,509Transportation facility charge - - -Concessions 2,248,520 2,044,290 3,110,624Property rentals 6,201,322 6,353,902 5,813,881Other 663,543 286,530 160,011Total operating revenue 68,051,446 69,373,717 70,918,962Non-Operating RevenueEarnings on cash and investments 9,171,250 4,879,174 3,188,810Passenger facility charge 13,686,560 13,879,589 13,655,542Customer facility charge 5,792,046 5,886,939 5,976,731Operating/Federal grant 3,022,340 936,958 136,058Other income 163,840 187,230 614,809Total non-operating revenue 31,836,036 25,769,890 23,571,950Capital Contributions 7,450,857 3,258,011 5,816,648Transfer from Special Facility Fund - - -Total revenue 107,338,339 98,401,618 100,307,560Operating ExpensesSalaries, wages and employee benefits 22,365,738 21,120,771 22,168,647Contractual services 23,004,062 25,474,042 25,680,324Commodities 5,663,077 2,616,891 2,621,999Other 98,355 - -Total operating expenses 51,131,232 49,211,704 50,470,970Non-Cash ExpensesDepreciation 27,159,055 28,400,493 38,649,530Amortization 133,872 209,533 288,380Total non-cash expenses 27,292,927 28,610,026 38,937,910Non-Operating ExpensesInterest expense 15,698,287 9,324,298 14,675,769Other expense 348,165 91,017 328,082Total non-operating expenses 16,046,452 9,415,315 15,003,851Total expenses 94,470,611 87,237,045 104,412,731Change in Net Assets $ 12,867,728 $ 11,164,573 $ (4,105,171)B-3

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Historical Revenues and ExpensesFor the Last Ten Fiscal YearsFYE 2006 FYE 2007 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012$ 10,952,845 $ 10,901,852 $ 12,426,693 $ 13,091,491 $ 11,613,273 $ 11,887,437 $ 12,964,52511,662,094 13,017,560 13,899,348 13,429,590 14,033,642 14,448,246 16,380,97535,769,941 40,032,941 44,007,005 40,303,290 40,059,593 43,366,827 46,167,6828,372,860 8,817,410 10,695,864 10,891,442 9,825,488 9,749,133 10,104,8101,760,366 4,296,620 4,540,222 4,117,922 3,737,492 4,011,223 4,748,1783,796,773 3,639,827 3,658,952 3,252,467 2,870,364 3,084,094 3,434,1427,928,682 14,381,823 14,020,277 16,130,905 13,866,117 12,983,509 11,815,552136,258 367,018 858,121 866,849 732,442 1,288,481 1,305,08280,379,819 95,455,051 104,106,482 102,083,956 96,738,411 100,818,950 106,920,9467,396,189 11,906,515 12,677,561 7,686,690 3,171,445 3,132,695 3,173,78720,252,999 24,097,730 23,822,136 20,159,368 20,532,775 20,454,358 20,887,0246,147,691 6,456,360 6,809,736 6,170,584 5,439,585 5,674,925 6,036,072130,359 168,117 185,220 290,638 315,569 264,630 154,660210,810 377,681 2,923,404 202,079 520,002 351,300 899,00634,138,048 43,006,403 46,418,057 34,509,359 29,979,376 29,877,908 31,150,54940,897,885 11,915,287 20,731,257 17,912,603 26,766,354 16,647,390 17,074,691- - - - - 19,341,408 -155,415,752 150,376,741 171,255,796 154,505,918 153,484,141 166,685,656 155,146,18624,007,384 25,022,038 27,455,554 30,198,871 31,199,724 29,265,231 29,543,64633,071,060 42,447,274 46,220,645 44,689,158 44,728,434 45,012,638 43,878,4542,977,198 4,012,999 4,260,908 3,794,294 3,925,026 4,445,428 4,280,476- - - - - - -60,055,642 71,482,311 77,937,107 78,682,323 79,853,184 78,723,297 77,702,57649,267,402 53,587,091 57,672,448 59,898,853 57,878,343 53,418,701 55,293,214353,723 357,548 357,548 366,076 341,883 332,408 332,40849,621,125 53,944,639 58,029,996 60,264,929 58,220,226 53,751,109 55,625,62219,186,893 18,105,307 18,883,496 17,680,222 16,546,951 14,777,031 14,090,7712,885,999 273,960 182,266 226,806 275,704 253,827 1,201,65322,072,892 18,379,267 19,065,762 17,907,028 16,822,655 15,030,858 15,292,424131,749,659 143,806,217 155,032,865 156,854,280 154,896,065 147,505,264 148,620,622$ 23,666,093 $ 6,570,524 $ 16,222,931 $ (2,348,362) $ (1,411,924) $ 19,180,392 $ 6,525,564B-4

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Statements of Cash FlowsFor the Last Ten Fiscal YearsFYE 2003 FYE 2004 FYE 2005Operating ActivitiesCash received from providing services $ 67,726,883 $ 69,653,034 $ 70,896,008Cash paid to employees, including benefits (22,801,455) (20,930,841) (21,967,293)Cash paid to suppliers (27,282,278) (41,303,178) (31,026,186)Cash provided by operating activities 17,643,150 7,419,015 17,902,529Non-Capital Financing ActivitiesProceeds from operating grants 3,022,340 936,958 136,058Due other government (5,517,238) - -Due to/from other funds 77,144 - -Transfer from Special Facility Fund - - -Cash provided by (used in) non-capital financing activities (2,417,754) 936,958 136,058Capital and Related Financing ActivitiesDebt issue costs paid (1,759,766) (33,458) (1,598,183)Acquisition and construction of capital assets (110,379,572) - -Purchase of capital assets - (784,394) (2,585,524)Construction of capital assets - (96,088,095) (44,432,769)Construction contract retainage 3,214,902 214,828 (267,614)Matured coupons - 37,573 -Proceeds from capital debt 132,941,887 - 84,261,051Capital debt refunded - - (36,080,000)Principal paid on capital debt (10,246,740) (10,790,000) (11,285,000)Interest paid on capital debt (13,912,757) (20,242,594) (19,138,877)Passenger facility charges 13,686,560 13,879,589 13,655,542Customer facility charges 5,792,046 5,886,939 5,976,731Proceeds from sales of capital assets - 96,213 384,465Capital contributed by federal government 9,557,005 3,279,074 5,700,284Other (184,325) - -Cash provided by (used in) capital and related financing activities 28,709,240 (104,544,325) (5,409,894)Investing ActivitiesPurchase of investments - - -Proceeds from sales and maturities of investments - - -Interest received 10,563,390 5,299,647 5,334,602Cash provided by (used in) investing activities 10,563,390 5,299,647 5,334,602Net Increase (Decrease) in Cash and Cash Equivalents 54,498,026 (90,888,705) 17,963,295Cash and Cash Equivalents, Beginning of Year 274,837,820 329,335,846 238,447,141Cash and Cash Equivalents, End of Year $ 329,335,846 $ 238,447,141 $ 256,410,436Reconciliation to Statements of Net AssetsCash and cash equivalentsUnrestricted $ 173,626,211 $ 125,868,377 $ 124,182,308Restricted 155,709,635 112,578,764 132,228,128Cash and cash equivalents at end of year $ 329,335,846 $ 238,447,141 $ 256,410,436B-5

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Statements of Cash FlowsFor the Last Ten Fiscal YearsFYE 2006 FYE 2007 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012$ 73,518,703 $ 95,566,308 $ 104,764,113 $ 104,578,665 $ 95,226,126 $ 101,133,077 $ 110,016,279(23,009,718) (24,436,847) (26,407,171) (28,402,760) (29,488,362) (27,868,107) (27,789,096)(26,723,628) (50,435,322) (50,843,151) (47,367,401) (51,862,278) (50,405,630) (47,952,358)23,785,357 20,694,139 27,513,791 28,808,504 13,875,486 22,859,340 34,274,825130,359 168,117 185,220 290,638 315,569 264,630 154,660(136,491) - - - - - -- - - - - (10,200,000) 1,890,042- - - - - 12,161,337 -(6,132) 168,117 185,220 290,638 315,569 2,225,967 2,044,702(113,707) - - (131,522) - - -- - - - - - -(5,472,265) (21,374,766) (51,036,535) (4,410,598) (2,540,502) (4,820,710) (1,440,130)(79,876,950) (60,492,147) (9,564,327) (57,125,631) (61,387,467) (27,346,878) (42,806,960)(911,404) 1,533,484 (903,033) (86,834) 880,519 1,174,719 (492,279)- - - - - - (10,246)20,211,081 - - 29,520,843 - - -(22,490,000) - - (29,495,000) - - -(11,780,000) (12,005,000) (15,340,000) (18,395,000) (18,940,000) (18,645,000) (19,555,000)(20,160,631) (18,148,223) (18,953,742) (17,984,104) (16,922,151) (15,965,087) (15,010,163)20,252,999 24,154,914 23,822,136 20,159,368 20,532,775 20,454,358 20,887,0246,147,691 6,405,410 6,809,736 6,170,584 5,439,585 5,674,925 6,036,072331,929 49,261 10,626,548 50,509 9,608 112,385 89,18733,094,115 18,567,862 18,282,279 17,744,515 29,407,470 14,561,083 17,281,424- - - - - - -(60,767,142) (61,309,205) (36,256,938) (53,982,870) (43,520,163) (24,800,205) (35,021,071)- (164,270,661) (213,899,519) (166,514,599) (110,718,723) (135,113,041) (110,418,540)- 184,452,920 213,940,650 176,372,324 136,977,950 130,745,094 106,839,9427,007,378 13,634,760 10,167,544 8,176,186 3,442,833 3,159,895 3,693,8867,007,378 33,817,019 10,208,675 18,033,911 29,702,060 (1,208,052) 115,288(29,980,539) (6,629,930) 1,650,748 (6,849,817) 372,952 (922,950) 1,413,744256,410,436 20,584,247 13,954,317 15,605,065 8,755,248 9,128,200 8,205,250$ 226,429,897 $ 13,954,317 $ 15,605,065 $ 8,755,248 $ 9,128,200 $ 8,205,250 $ 9,618,994$ 124,978,593 $ 8,716,360 $ 3,429,851 $ 4,866,335 $ 4,738,391 $ 3,462,960 $ 4,345,014101,451,304 5,237,957 12,175,214 3,888,913 4,389,809 4,742,290 5,273,980$ 226,429,897 $ 13,954,317 $ 15,605,065 $ 8,755,248 $ 9,128,200 $ 8,205,250 $ 9,618,994B-6

City of Kansas City, Missouri Department of AviationFinancial Trend InformationSchedule of Unrestricted and Restricted Cash and InvestmentsFor the Last Ten Fiscal YearsFYE 2003 FYE 2004 FYE 2005Unrestricted cash and investments $ 173,626,211 $ 125,868,377 $ 124,182,309Restricted passenger facility charge 13,503,621 13,528,927 11,635,032Restricted customer facility charge 12,339,400 17,928,526 9,398,371Restricted DEA forfeited property 123,724 55,054 84,563Restricted Richards-Gebaur 2,504,857 3,764,239 4,906,580Restricted airlines operation and maintenance 1,000,000 1,951,189 1,996,607Restricted deferred maintenance and replacement 750,000 6,410,983 6,560,207Restricted principal and interest 13,837,907 10,821,389 8,789,141Restricted bond reserves 15,275,500 15,275,500 10,875,500Restricted construction proceeds 96,048,330 42,509,427 77,640,831Restricted other 326,297 333,530 341,295Total unrestricted and restricted cash and investments $ 329,335,847 $ 238,447,141 $ 256,410,436B-7

City of Kansas City, Missouri Aviation DepartmentFinancial Trend InformationSchedule of Unrestricted and Restricted Cash and InvestmentsFor the Last Ten Fiscal YearsFYE 2006 FYE 2007 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012$ 124,978,593 $ 124,643,863 $ 106,564,680 $ 101,585,472 $ 81,306,740 $ 66,785,456 $ 73,957,60919,895,495 19,419,271 34,304,694 33,020,457 37,001,122 41,549,123 38,710,99413,443,851 16,734,497 6,945,959 3,193,356 2,146,849 4,257,625 4,649,539190,316 193,832 60,942 57,940 76,324 59,229 74,1955,232,465 2,998,500 13,430,179 5,814,010 1,864,246 1,680,609 15,5043,998,071 6,154,472 11,913,719 10,956,374 11,240,558 11,457,917 10,661,000750,000 750,000 750,000 750,000 750,000 750,000 -8,958,129 11,011,952 19,404,675 14,907,196 11,974,190 12,320,864 12,516,4958,437,000 8,437,000 8,437,000 14,819,500 12,858,000 12,858,000 12,858,00040,545,977 7,431,306 - - - 4,686,713 7,555,240- - - - - 8,469,811 8,469,811$ 226,429,897 $ 197,774,693 $ 201,811,848 $ 185,104,305 $ 159,218,029 $ 164,875,347 $ 169,468,387B-8

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Revenues, Expenses and Changes in Net Assets by FacilityFor the Year Ended April 30, 2012Charles B.Kansas CityWheelerInternational Airport Downtown Airport TotalOperating RevenuesTerminal and aprons $ 12,964,525 $ - $ 12,964,525Airfield 16,104,911 276,064 16,380,975Parking 46,167,682 - 46,167,682Rental car 10,083,539 21,271 10,104,810Transportation facility charges 4,748,178 - 4,748,178Concessions 3,434,142 - 3,434,142Property rental 8,875,883 2,939,669 11,815,552Other 742,761 562,321 1,305,082Total operating revenues 103,121,621 3,799,325 106,920,946Operating ExpensesSalaries, wages and employee benefits 28,629,793 913,853 29,543,646Contractual services 42,067,602 1,810,852 43,878,454Commodities 3,626,155 654,321 4,280,476Total operating expenses beforedepreciation and amortization 74,323,550 3,379,026 77,702,576Operating Income Before Non-cash Expense 28,798,071 420,299 29,218,370Non-cash Operating ExpenseDepreciation 53,827,730 1,465,484 55,293,214Amortization 332,408 - 332,408Total non-cash operating expense 54,160,138 1,465,484 55,625,622Total Operating Loss (25,362,067) (1,045,185) (26,407,252)Non-operating RevenuesEarnings on cash and investments 3,173,787 - 3,173,787Passenger facility charge 20,887,024 - 20,887,024Customer facility charge 6,036,072 - 6,036,072Operating grant revenue 154,660 - 154,660Proceeds from CID sales tax 412,300 - 412,300Other 486,706 - 486,706Total non-operating revenues 31,150,549 - 31,150,549Non-operating ExpensesInterest 14,090,771 - 14,090,771Other 1,201,653 - 1,201,653Total non-operating expenses 15,292,424 - 15,292,424Total non-operating revenues, net 15,858,125 - 15,858,125Loss Before Capital Contributions (9,503,942) (1,045,185) (10,549,127)Capital Contributions 12,808,807 4,265,884 17,074,691Change in Net Assets $ 3,304,865 $ 3,220,699 $ 6,525,564B-9

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of GrantsFor the Year Ended April 30, 2012Maximum FYE12Grant Number Location Description Balance Revenue Executed StatusB-10Capital Grant RevenueAIP 3-29-0041-17 MKC Rehabilitate Runway 3/21 $ 4,263,294 $ 67,656 FYE08 Closed FYE12AIP 3-29-0041-18 MKC Rehabilitate Runway 1/19 1,123,693 - FYE09 OpenAIP 3-29-0041-20 MKC Rehabilitate Runway 1/19 7,735,229 - FYE09 OpenAIP 3-29-0041-21 MKC Rehabilitate Runway 1/19 8,246,000 309,106 FYE10 OpenAIP 3-29-0041-22 MKC Rehabilitate Taxiways and MITLs 4,260,750 3,839,288 FYE12 OpenAIP 3-29-0040-57 MCI Rehabilitate Taxiways M & M1 5,325,000 - FYE09 Closed FYE12AIP 3-29-0040-58 MCI Rehab Runway 01L/19R; Cargo Apron Pavement Rehab 5,430,067 - FYE09 Closed FYE12AIP 3-29-0040-59 MCI Rehabilitate Runway 1/19R Lighting 2,831,250 - FYE09 OpenAIP 3-29-0040-65 MCI Airfield Pavement Repairs; Runway 1L - 19R 11,500,000 8,698,987 FYE12 OpenAIP 3-29-0040-62 MCI Rehabilitate Runways 1/19R & 9/27; Terminal Aprons 7,000,000 - FYE09 Closed FYE12AIP 3-29-0040-66 MCI Planning Study for New Terminal Area 3,375,000 606,325 FYE12 OpenCMAQ-3309(402) MCI CNG Facility Expansion 500,000 - FYE07 OpenHSTS04-09-H-REC311 MCI KCI Closed Circuit Television Camera 9,354,288 3,050,129 FYE11 OpenCMAQ-DE-EE0002538 MCI CNG Buses for Congestion Mitigation Air Quaility 503,200 503,200 FYE12 Closed FYE12Total Capital Grant Revenue $ 17,074,691Operating Grant RevenueMCI TSA-Explosives Detection K-9 Team Program $ 142,210MCI DEA-Task Force Program 12,450Total Operating Grant Revenue $ 154,660

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Highest Paying CustomersFor the Last Eight Fiscal Years (1)FYE 2005 (2) FYE 2006 FYE 2007 FYE 2008Rank Amount Rank Amount Rank Amount Rank AmountSouthwest Airlines 1 $5,751,808 1 $5,826,355 1 $6,674,658 1 $7,070,352American Airlines 2 3,573,652 2 3,863,103 2 3,307,889 2 4,072,517Midwest Express Airlines 6 2,043,120 4 2,296,561 3 2,853,057 3 3,520,033Hertz Car Rental 3 2,715,287 3 2,303,147 4 2,439,401 4 3,254,911Host International, Inc. - - 8 1,768,374 6 1,921,881 5 2,166,815Avis Budget Group(4) 4 2,575,275 5 2,169,480 5 2,001,068 6 2,139,354Vanguard Car Rental 7 1,967,296 7 1,821,328 8 1,627,084 7 2,102,129Delta Airlines 5 2,312,019 6 1,834,106 7 1,748,786 8 1,688,873Executive Beechcraft - - 10 1,584,246 11 1,469,770 9 1,659,689Northwest Airlines 8 1,905,249 11 1,381,179 9 1,588,898 10 1,655,797United Airlines 9 1,718,621 12 1,374,774 10 1,517,989 11 1,517,862US Airways 11 1,323,884 14 1,283,125 14 1,223,891 12 1,494,836Continental Airlines 12 1,302,199 13 1,346,992 12 1,463,371 13 1,444,205Paradies-Kansas City, LLC 10 1,400,545 9 1,676,215 13 1,382,819 14 1,246,582Frontier - - - - - - 15 1,054,209Port Authority of - - 15 1,071,001 15 1,071,001 - -Kansas City, MissouriFYE 2009 FYE 2010 FYE 2011 FYE 2012Rank Amount Rank Amount Rank Amount Rank AmountSouthwest Airlines 1 $7,920,563 1 $8,104,847 1 $8,408,033 1 $9,387,483Delta Air Lines(3) 8 1,900,579 3 4,310,931 3 4,400,865 2 5,026,302Frontier 14 1,136,431 12 1,378,392 4 2,388,070 3 3,709,301US Airways 10 1,706,840 9 1,958,750 7 2,244,620 4 2,456,482Hertz Car Rental 3 2,949,849 4 2,332,056 5 2,287,999 5 2,421,931American Airlines 2 3,552,199 2 6,804,134 2 6,981,072 6 2,421,925Continental Airlines 13 1,214,911 13 1,326,843 8 2,092,494 7 2,382,753United Airlines 11 1,649,140 5 2,183,253 6 2,263,547 8 2,323,265Vanguard Car Rental 6 2,028,272 6 2,060,267 9 2,087,101 9 2,239,967Avis Budget Group(4) 5 2,201,557 7 2,053,882 10 1,991,583 10 2,181,467Host International, Inc. 7 2,024,811 10 1,815,064 11 1,952,178 11 2,023,491Signature Flight Support(5) 12 1,642,471 11 1,424,421 12 1,344,064 12 1,316,190Enterprise Rent A Car 15 1,062,849 14 1,151,347 13 1,178,265 13 1,265,939VML, Inc. - - - - 14 1,005,143 14 1,031,289WireCo WorldGroup - - - - - - 15 100,165Paradies News & Gifts - - - - 15 926,396 - -Midwest Express Airlines 4 2,830,875 8 2,026,730 - - - -DTAG - - 15 1,055,299 - - - -Northwest Airlines 9 1,732,444 - - - - - -(1) Information not available prior to FYE 2005.(2) FYE2005 rankings were provided for the 12 highest paying customers only.(3) Delta and Northwest merged during FYE 2010.(4) Avis Rent A Car and Budget Rent A Car merged operations effective September 2006.(5) Executive Beechcraft changed its name to Signature Flight Support in FYE 2011.B-11

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Most Popular DestinationsFor the Last Eight Calendar Years (1)Number of passengers by calendar yearRank City CY2004 City CY2005 City CY2006 City CY20071 Chicago, Midway 401,770 Chicago, Midway 411,590 Chicago, Midway 411,623 Denver 479,7782 Chicago, O'Hare 339,570 Las Vegas 353,380 Denver 396,193 Chicago, Midway 398,3133 Las Vegas 333,180 Chicago, O'Hare 339,250 Las Vegas 386,906 Las Vegas 377,7654 Phoenix 313,890 Los Angeles 313,480 Chicago-O'Hare 346,615 Chicago, O'Hare 356,9355 Los Angeles 306,640 Phoenix 309,890 Los Angeles 344,220 Orlando 354,6036 Atlanta 299,380 Atlanta 304,890 Atlanta 330,988 Los Angeles 344,8677 Orlando 292,630 Orlando 281,580 Dallas-Love 327,273 Atlanta 330,7638 Dallas/Fort Worth 277,210 Denver 277,190 Phoenix 320,630 Phoenix 315,8839 Denver 276,180 Dallas/Fort Worth 264,840 Orlando 318,813 Dallas-Love 292,55510 New York, LGA 239,590 New York 252,110 New York, LGA 264,460 New York, LGA 280,35911 Washington, DCA 198,920 Washington, DCA 235,630 Washington-DCA 235,037 Dallas/Fort Worth 238,55312 St. Louis 183,200 St. Louis 178,580 Dallas/Fort Worth 211,085 Washington, DCA 232,04313 Baltimore 171,920 Baltimore 169,320 St. Louis 194,399 San Diego 195,48814 Tampa 165,400 Tampa 155,740 San Diego 180,891 St. Louis 190,11815 Seattle 149,180 San Diego 152,940 Tampa 174,780 Tampa 180,99916 San Diego 148,640 Nashville 149,560 Baltimore 170,685 Seattle/Tacoma 167,00517 Detroit 145,690 Seattle 145,040 Nashville 161,721 Nashville 165,20218 Nashville 142,990 Detroit 143,360 Seattle/Tacoma 156,264 Baltimore 164,14619 Philadelphia 138,410 Minneapolis 143,210 Fort Lauderdale 148,578 Boston 162,34820 Minneapolis 131,440 Philadelphia 140,410 Boston 148,310 Philadelphia 148,118Total Passengers, alldestinations 8,721,510Total Passengers, alldestinations 8,875,340Total Passengers, alldestinations 10,143,936Total Passengers, alldestinations 10,462,731Rank City CY2008 City CY2009 City CY2010 City CY20111 Denver 439,711 Denver 409,864 Denver 418,499 Denver 411,9692 Chicago, Midway 384,912 Chicago, Midway 335,554 Chicago, Midway 326,712 Chicago, Midway 326,9883 Las Vegas 360,666 Las Vegas 327,926 Orlando 313,889 Orlando 311,6824 Orlando 336,657 Orlando 320,761 Las Vegas 303,119 Las Vegas 305,6085 Chicago, O'Hare 321,504 Los Angeles 285,248 Atlanta 273,996 Atlanta 273,3616 Los Angeles 313,323 Atlanta 279,222 Los Angeles 261,394 Los Angeles 262,0417 Atlanta 310,019 Chicago, O'Hare 271,320 Phoenix 254,727 Phoenix 259,2958 Dallas, Love 305,827 Phoenix 257,725 New York, LGA 241,517 New York, LGA 244,3599 Phoenix 274,859 Dallas-Love 228,369 Chicago, O'Hare 240,507 Chicago, O'Hare 236,90010 New York, LGA 240,927 New York, LGA 220,260 Dallas, Love 224,405 Dallas, Love 227,61911 Dallas/Fort Worth 216,432 Dallas/Forth Worth 209,465 Washington, DCA 214,543 Washington, DCA 214,95712 Baltimore 201,294 Baltimore 192,488 Dallas/Forth Worth 189,435 Dallas/Forth Worth 187,90613 Washington, DCA 195,273 Washington, DCA 185,986 Baltimore 176,061 Baltimore 173,92014 San Diego 181,780 Tampa 185,285 Tampa 169,359 Tampa 165,79315 Tampa 167,177 Seattle/Tacoma 161,337 Seattle/Tacoma 166,218 Seattle/Tacoma 164,12716 Seattle/Tacoma 166,751 San Diego 155,656 San Diego 158,480 San Diego 160,11317 St. Louis 164,594 Fort Lauderdale 145,412 Milwaukee 152,599 Milwaukee 150,09818 Nashville 155,937 Nashville 142,856 Fort Lauderdale 139,936 Philadelphia 143,10819 Philadelphia 153,044 St. Louis 135,036 Philadelphia 138,328 Fort Lauderdale 141,82320 Boston 145,924 Philadelphia 127,792 Nashville 137,945 Nashville 135,246Total Passengers, alldestinations 9,866,976Total Passengers, alldestinations 8,993,054Total Passengers, alldestinations 9,033,011Total Passengers, alldestinations 8,451,492(1) Information not available prior to CY2004.One pasenger flying roundtrip is counted twice.Source: U.S. DOT Dynamic Table Report for all Airlines between MCI and all DestinationsB-12

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Non-Stop DestinationsNon-Stop Passenger Flights from Kansas City International Airport (MCI) (number of daily flights/weekly flights)Albuquerque (1/7) Harrison (2/12) Philadelphia (3/20) International FlightsAtlanta (10/62) Houston - Hobby (1/7) Phoenix (6/42) Cancun, MX (0/3)Austin (2/10) Houston-Intercontinental (7/40) Portland (1/7) Puerto Vallarta, MX (0/1)Baltimore (3/20) Indianapolis (2/13) Salina (3/18) San Jose Cabo, MX (0/1)Boston (2/12) Las Vegas (5/33) Salt Lake City (3/19) Toronto, ON, CA (1/7)Charlotte-Douglas (5/30) Los Angeles (3/25) San Antonio (1/4)Chicago-Midway (10/65) Memphis (3/18) San Diego (2/13)Chicago-O'Hare (14/98) Milwaukee (5/33) San Francisco (3/18) 186 peak day departures toCincinnati (3/18) Minneapolis/St. Paul (6/41) Seattle/Tacoma (2/11) 49 non-stop destinationsCleveland (3/21) Nashville (3/20) St. Louis (5/31)Dallas/Fort Worth (8/52) New Orleans (1/10) Tampa (2/13)Dallas-Love (10/65) New York-La Guardia (6/39) Washington-Dulles (3/19)Denver (17/106) Newark (4/30) Washington-National (5/32)Detroit (4/26) Oakland (1/7)Fort Lauderdale (1/7) Oklahoma City (2/14)Fort Myers (0/1) Orlando, FL (2/15)B-13

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Passenger and Cargo AirlinesMajor/National AirlinesAirTran AirwaysAmerican AirlinesDelta Air LinesFrontier AirlinesSouthwest AirlinesUnited AirlinesUS AirwaysMajor/International AirlineAir Canada/Jazz AirRegional/Commuter AirlinesAmerican Airlines/American EagleContinental Airlines/Expressjet AirlinesDelta Air Lines/Atlantic Southeast AirlinesDelta Air Lines/ComairDelta Air Lines/Compass AirlinesDelta Air Lines/Mesaba AviationDelta Air Lines/Pinnacle AirlinesDelta Air Lines/Shuttle AmericaDelta Air Lines/SkyWest AirlinesFrontier Airlines/Midwest AirlinesSeaPort Airlines/Wings of AlaskaUnited Airlines/Expressjet AirlinesUnited Airlines/GoJet Airlines LLCUnited Airlines/Mesa AirlinesUnited Airlines/Shuttle AmericaUnited Airlines/SkyWest AirlinesUS Airways/Air WisconsinUS Airways/Mesa AirlinesUS Airways/Midwest AirlinesUS Airways/PSACargo CarriersFedExUPSBAX GlobalB-14

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Airline ServicePeak Day WeeklyCarrier Non-Stop Destination Departures DeparturesAir Canada Toronto, ON, CA 1 7AirTran Airways Atlanta, GA, US 3 18American Airlines Chicago-O'Hare, IL, US 7 48Dallas/Fort Worth, TX, US 8 52Continental Airlines Cleveland, OH, US 3 21Houston-Intercontinental, TX, US 7 40Newark, NJ, US 4 30Delta Air Lines Atlanta, GA, US 7 44Austin, TX, US 1 5Boston, MA, US 1 6Cincinnati, OH/Covington, KY, US 3 18Los Angeles, CA, US 1 6Detroit, MI, US 4 26Memphis, TN, US 3 18Minneapolis/St. Paul, MN, US 6 41New Orleans, LA, US 1 6New York-La Guardia, NY, US 4 26Salt Lake City, UT, US 3 19Frontier Airlines Austin, TX, US 1 5Boston, MA, US 1 6Cancun, MX 0 3Denver, CO, US 5 32Fort Myers, FL, US 0 1Houston - Hobby, TX, US 1 7Las Vegas, NV, US 1 6Los Angeles, CA, US 0 5Milwaukee, WI, US 3 19New Orleans, LA, US 0 4New York-La Guardia, NY, US 2 13Puerto Vallarta, MX 0 1San Antonio, TX, US 1 4San Francisco, CA, US 1 4San Jose Cabo, MX 0 1Seattle/Tacoma, WA, US 1 4Washington-National, DC, US 3 19B-15

City of Kansas City, Missouri Department of AviationRevenue Capacity InformationSchedule of Airline ServicePeak Day WeeklyCarrier Non-Stop Destination Departures DeparturesSeaPort Airlines/Wings of Alaska Harrison, AR, US 2 12Salina, KS, US 3 18Southwest Airlines Albuquerque, NM, US 1 7Baltimore, MD, US 3 20Chicago-Midway, IL, US 10 65Dallas-Love, TX, US 10 65Denver, CO, US 5 33Fort Lauderdale, FL, US 1 7Indianapolis, IN, US 2 13Las Vegas, NV, US 4 27Los Angeles, CA, US 2 14Milwaukee, WI, US 2 14Nashville, TN, US 3 20Oakland, CA, US 1 7Oklahoma City, OK, US 2 14Orlando, FL, US 2 15Phoenix, AZ, US 3 19Portland, OR, US 1 7San Diego, CA, US 2 13Seattle/Tacoma, WA, US 1 7St. Louis, MO, US 5 31Tampa, FL, US 2 13United Airlines Chicago-O'Hare, IL, US 7 50Denver, CO, US 7 41San Francisco, CA, US 2 14Washington-Dulles, VA, US 3 19US Airways Charlotte-Douglas, NC, US 5 30Philadelphia, PA, US 3 20Phoenix, AZ, US 3 23Washington-National, DC, US 2 13B-16

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Ratios of Outstanding Debt, Debt Service and Debt LimitsFor the Last Ten Fiscal YearsFYE 2003 FYE 2004 FYE 2005 FYE 2006Outstanding Debt by TypeGeneral Airport Revenue Bonds (GARBs) $ 251,430,000 $ 244,230,000 $ 226,410,000 $ 215,595,000Subordinate Bonds - - 57,020,000 57,020,000Passenger Facility Charge Bonds 136,520,000 132,930,000 129,220,000 125,380,000Outstanding Debt 387,950,000 377,160,000 412,650,000 397,995,000Enplaned Passengers 4,987,421 4,905,086 5,036,889 5,112,330Outstanding Debt per Enplaned Passenger $ 77.79 $ 76.89 $ 81.93 $ 77.85Debt Service (in thousands)Principal $ 10,325 $ 10,790 $ 10,710 $ 11,780Interest 14,274 20,243 17,878 20,889Total Debt Service $ 24,599 $ 31,033 $ 28,588 $ 32,669Ratio of Debt Service to Outstanding Debt 6.34% 8.23% 6.93% 8.21%B-17

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Ratios of Outstanding Debt, Debt Service and Debt LimitsFor the Last Ten Fiscal YearsFYE 2007 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012$ 207,570,000 $ 199,380,000 $ 187,500,000 $ 176,300,000 $ 165,720,000 $ 154,590,00057,020,000 54,005,000 50,875,000 47,615,000 44,220,000 40,670,000121,400,000 117,265,000 112,965,000 108,485,000 103,815,000 98,940,000385,990,000 370,650,000 351,340,000 332,400,000 313,755,000 294,200,0005,610,488 5,905,988 5,058,885 4,939,032 4,945,779 5,198,808$ 68.80 $ 62.76 $ 69.45 $ 67.30 $ 63.44 $ 56.59$ 12,005 $ 15,340 $ 18,940 $ 18,645 $ 19,555 $ 20,24519,606 18,952 16,919 15,962 15,007 14,045$ 31,611 $ 34,292 $ 35,859 $ 34,607 $ 34,562 $ 34,2908.19% 9.25% 10.21% 10.41% 11.02% 11.66%B-18

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical General Airport Revenue Bond Debt Service CoverageFor the Last Ten Fiscal YearsFYE03 FYE04 FYE05 FYE06Revenues 1Airfield $ 10,204,660 $ 10,228,110 $ 10,038,968 $ 11,662,094Terminal 11,237,347 10,969,892 12,273,098 14,707,359Parking 31,654,833 33,089,817 34,450,836 35,606,188Rental cars 7,290,691 7,864,913 7,829,509 8,372,860Aviation services area 3,782,221 3,559,507 2,679,955 4,594,393Other property rentals 3,216,692 2,299,644 2,396,089 2,440,441Operating grant 3,022,340 936,958 136,058 130,359Customer facility charges 5,792,046 5,886,939 5,976,731 6,147,691Transportation facility charges - - - 1,760,366Interest earnings 3,900,572 4,137,949 3,127,290 6,645,437Total revenues 80,101,402 78,973,729 78,908,534 92,067,188Cash provided by capitalized interest - 3,455,944 - -Total cash available for debt service 80,101,402 82,429,673 78,908,534 92,067,188O&M ExpensesSalaries, wages and benefits 22,365,738 21,120,771 22,168,647 24,007,384Contractual services 26,280,324 25,474,042 25,680,324 33,071,060Commodities and supplies 2,485,170 2,616,891 2,621,999 2,977,198Total O&M expenses 51,131,232 49,211,704 50,470,970 60,055,642Net Revenues Available for Debt Service 28,970,170 33,217,969 28,437,564 32,011,546Senior GARB Debt ServiceSeries 1994A Bonds - - - -Series 1994A Bonds 3,085,095 3,093,020 - -Series 1995 Bonds 4,172,590 4,163,245 4,151,388 3,501,763Series 1997A Bonds 1,619,395 1,619,395 1,619,395 1,619,395Series 1999A Bonds 5,242,113 5,248,006 5,267,244 5,283,619Series 2003A Bonds - 3,660,381 3,504,620 3,504,620Series 2003B Bonds - 2,832,546 2,712,013 2,712,013Series 2004E Bonds 3 - - 976,453 1,861,963Series 2005H Bonds 4 - - - 506,034Series 2008A Bonds 5 - - - -Total senior GARB debt service 14,119,193 20,616,593 18,231,113 18,989,405Senior GARB Coverage 2.05 1.61 1.56 1.69Subordinate GARB Debt ServiceSeries 2000 Subordinate GARBs 2 740,000 740,000 740,000 -Series 2005C Subordinate GARBs 6 - - - 2,647,595Subtotal 740,000 740,000 740,000 2,647,595Total GARB Debt Service $ 14,859,193 $ 21,356,593 $ 18,971,113 $ 21,637,000Total GARB Coverage 1.95 1.56 1.50 1.481 Revenues presented in accordance with the methodology set forth in the GARB bond ordinances.2 Series 2000 subordinate GARBs were issued in December 2000 and refunded in April 2005.3 Series 2004E GARBs were issued in part to refund the Series 1994A GARBs.4 Series 2005H GARBs were issued in part to refund the Series 1995 GARBs.5 Series 2008A GARBs were issued in part to refund the Series 1997A GARBs.6 Series 2005C Subordinate GARBs were issued in part to refund the Series 2000 Subordinate GARBs.B-19

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical General Airport Revenue Bond Debt Service CoverageFor the Last Ten Fiscal YearsFYE12FYE07 FYE08 FYE09 FYE10 FYE11 FYE12 Change$ 13,017,561 $ 13,899,348 $ 13,429,590 $ 14,033,642 $ 14,448,246 $ 16,380,975 13.4%14,460,030 16,085,645 16,343,958 14,483,637 14,971,531 16,398,667 9.5%40,032,941 44,007,005 40,303,290 40,059,593 43,366,827 46,167,682 6.5%8,817,410 10,695,864 10,891,442 9,825,488 9,749,133 10,104,810 3.6%10,576,261 9,728,175 9,873,639 8,221,341 6,076,945 3,918,673 -35.5%2,961,357 5,045,088 7,124,115 6,377,218 8,195,045 9,201,962 12.3%168,117 185,220 290,638 315,569 264,630 154,660 -41.6%6,456,360 6,809,736 6,170,584 5,439,585 5,674,925 6,036,072 6.4%4,296,620 4,540,222 4,117,922 3,737,492 4,011,223 4,748,178 18.4%10,710,543 10,895,280 6,049,066 2,133,958 2,103,392 2,260,811 7.5%111,497,200 121,891,583 114,594,245 104,627,524 108,861,897 115,372,490 6.0%- - - - - -111,497,200 121,891,583 114,594,245 104,627,524 108,861,897 115,372,49025,022,038 26,514,668 28,831,360 29,797,055 28,905,636 28,355,253 -1.9%42,447,274 46,220,645 44,689,158 44,728,434 45,012,638 43,878,454 -2.5%4,012,999 4,260,908 3,794,294 3,925,026 4,445,428 4,280,475 -3.7%71,482,311 76,996,221 77,314,813 78,450,515 78,363,702 76,514,18240,014,889 44,895,362 37,279,432 26,177,008 30,498,195 38,858,308 27.4%- - - - - -- - - - - -- - - - - -1,619,395 1,619,395 809,698 - - -5,267,394 5,253,700 1,390,569 - - -3,504,620 3,504,620 5,855,045 5,856,726 5,857,641 5,856,1802,712,013 2,712,013 2,712,013 2,712,013 2,712,013 2,712,0131,872,988 1,884,538 1,891,888 1,885,088 8,621,200 8,619,8633,497,050 3,284,450 7,091,000 8,153,875 - -- - 674,027 1,363,200 1,593,500 1,598,80018,473,460 18,258,715 20,424,238 19,970,901 18,784,354 18,786,8562.17 2.46 1.83 1.31 1.62 2.07- - - - - -2,888,285 5,827,910 5,789,285 5,759,535 5,728,160 5,709,5352,888,285 5,827,910 5,789,285 5,759,535 5,728,160 5,709,535$ 21,361,745 $ 24,086,625 $ 26,213,523 $ 25,730,436 $ 24,512,514 $ 24,496,3911.87 1.86 1.42 1.02 1.24 1.59B-20

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Annual Passenger EnplanementsCalendar Years 1991 – 2011Domestic International 1 Total EnplanementsYear Actual % of Total Actual % of Total Actual % Chan1991 3,473,333 100.0% - 0.0% 3,473,333 0.0%1992 3,668,288 98.9% 42,557 1.1% 3,710,845 6.8%1993 3,936,402 99.1% 33,952 0.9% 3,970,354 7.0%1994 4,419,734 99.0% 46,241 1.0% 4,465,975 12.5%1995 4,702,667 99.1% 41,226 0.9% 4,743,893 6.2%1996 5,002,074 99.2% 42,240 0.8% 5,044,314 6.3%1997 5,478,912 98.9% 62,658 1.1% 5,541,570 9.9%1998 5,531,409 99.0% 55,228 1.0% 5,586,637 0.8%1999 5,861,565 99.0% 58,014 1.0% 5,919,579 6.0%2000 6,013,923 98.9% 66,372 1.1% 6,080,295 2.7%2001 5,802,901 99.0% 56,255 1.0% 5,859,156 -3.6%2002 5,148,924 99.2% 42,892 0.8% 5,191,816 -11.4%2003 4,828,048 99.5% 22,223 0.5% 4,850,271 -6.6%2004 4,997,932 99.4% 29,678 0.6% 5,027,610 3.7%2005 4,958,313 99.4% 27,892 0.6% 4,986,205 -0.8%2006 5,497,244 99.2% 43,460 0.8% 5,540,704 11.1%2007 5,767,798 98.9% 64,861 1.1% 5,832,659 5.3%2008 5,309,975 98.8% 65,951 1.2% 5,375,926 -7.8%2009 4,883,146 99.2% 39,263 0.8% 4,922,409 -8.4%2010 4,908,782 99.2% 40,949 0.8% 4,949,731 0.6%2011 5,044,028 99.1% 43,999 0.9% 5,088,027 2.8%Average Annual Growth Rate1991-2011 1.9% - 0.2% - 1.9% -1 International enplanements by Air Canada, Air Canada Jazz, Frontier, and charter airlines.Source: Kansas City Aviation Department records.B-21

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Monthly EnplanementsCalendar Years 2002 – 2011 and January through April of 2012Month 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012B-22January 380,992 338,163 337,474 347,572 373,440 393,796 420,963 335,323 344,321 352,322 368,418February 362,465 331,667 326,816 335,021 367,127 384,469 388,933 334,555 318,086 314,058 353,311March 477,432 412,804 441,391 437,344 471,396 480,905 514,468 401,116 411,065 417,787 450,933April 427,839 361,699 395,116 390,139 424,238 443,021 450,995 387,324 401,469 386,822 409,108May 495,070 434,235 453,755 457,508 490,206 528,260 486,801 441,917 451,185 466,900June 510,659 457,406 488,199 468,876 553,316 570,104 515,415 462,261 476,489 491,674July 523,136 488,213 501,417 484,473 503,287 574,209 517,648 494,361 483,631 504,185August 447,074 434,728 438,691 428,940 466,655 543,246 458,184 427,956 424,756 450,001September 361,990 376,967 399,339 393,746 429,614 467,978 397,736 399,782 407,386 424,926October 416,715 426,811 430,486 427,892 484,886 515,306 440,106 439,678 442,777 430,055November 368,549 376,603 408,206 407,708 527,283 487,533 376,968 396,039 409,360 430,582December 419,895 410,975 406,720 406,986 449,256 443,832 407,709 402,097 379,206 418,715Total 5,191,816 4,850,271 5,027,610 4,986,205 5,540,704 5,832,659 5,375,926 4,922,409 4,949,731 5,088,027 1,581,770Source: Kansas City Aviation Department records.Source: Air Transport Association (ATA). ATA data includes only scheduled service by ATA-member passenger airlines. As of March 2011, ATAAirline members included ABX Air, AirTran Airways, Alaska, American, ASTAR Air Cargo, Atlas Air, Continental, Delta, Evergreen International, FederalExpress, Hawaiian, JetBlue, Southwest, United, UPS and US Airways.

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Changes in Monthly Enplanements vs. U.S. Domestic MonthlyEnplanementsCalendar Years 2002 – 2011 and January through April of 20122002-03 2003-04 2004-052005-06 2006-07MCI US MCI US MCI US MCI US MCI US 1January -11.2% 2.7% -0.2% -2.0% 3.0% 6.7% 7.4% 0.1% 5.5% N/AFebruary -8.5% -1.8% -1.5% 5.5% 2.5% 1.0% 9.6% -1.1% 4.7% N/AMarch -13.5% -5.5% 6.9% 4.5% -0.9% 5.7% 7.8% -3.0% 2.0% N/AApril -15.5% -5.8% 9.2% 10.2% -1.3% -0.3% 8.7% 0.1% 4.4% N/AMay -12.3% 5.3% 4.5% 4.9% 0.8% 4.7% 7.1% -2.3% 7.8% N/AJune -10.4% -3.9% 6.7% 6.3% -4.0% 1.5% 18.0% -2.9% 3.0% N/AJuly -6.7% -0.9% 2.7% 3.7% -3.4% 2.4% 3.9% -5.1% 14.1% N/AAugust -2.8% -5.2% 0.9% 3.3% -2.2% 0.7% 8.8% -3.5% 16.4% N/ASeptember 4.1% -1.7% 5.9% 5.1% -1.4% 3.6% 9.1% -1.9% 8.9% N/AOctober 2.4% -1.0% 0.9% 5.7% -0.6% -3.4% 13.3% 2.1% 6.3% N/ANovember 2.2% 0.8% 8.4% 7.5% -0.1% -0.3% 29.3% 1.5% -7.5% N/ADecember -2.1% -4.0% -1.0% 3.5% 0.1% -2.2% 10.4% 1.7% -1.2% N/A-6.6% -2.8% 3.7% 4.8% -0.8% 1.6% 11.1% -1.3% 5.3%1 U.S. Domestic monthly enplanements data is no longer available to non-ATA members effective December 31, 2006.B-23

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Changes in Monthly Enplanements vs. U.S. Domestic MonthlyEnplanementsCalendar Years 2002 – 2011 and January through April of 20122007-08 2008-09 2009-102010-11 2011-12MCI US 1 MCI US 1 MCI US 1 MCI US 1 MCI US 16.9% N/A -20.3% N/A 2.7% N/A 2.3% N/A 4.6% N/A1.2% N/A -14.0% N/A -4.9% N/A -1.3% N/A 12.5% N/A7.0% N/A -22.0% N/A 2.5% N/A 1.6% N/A 7.9% N/A1.8% N/A -14.1% N/A 3.7% N/A -3.6% N/A 5.8% N/A-7.8% N/A -9.2% N/A 2.1% N/A 3.5% N/A-9.6% N/A -10.3% N/A 3.1% N/A 3.2% N/A-9.9% N/A -4.5% N/A -2.2% N/A 4.2% N/A-15.7% N/A -6.6% N/A -0.7% N/A 5.9% N/A-15.0% N/A 0.5% N/A 1.9% N/A 4.3% N/A-14.6% N/A -0.1% N/A 0.7% N/A -2.9% N/A-22.7% N/A 5.1% N/A 3.4% N/A 5.2% N/A-8.1% N/A -1.4% N/A -5.7% N/A 10.4% N/A-7.8% -8.4% 0.6% 2.8%B-24

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Airlines Market ShareCalendar Years 2002 – 2011 and January through April of 20122002 2003 2004 2005Domestic Air CarrierAirTran 11,657 79,641 88,923 89,982Alaska Airlines 1 - - - -America West 2 132,673 124,553 146,694 140,895American 745,935 743,973 658,969 684,307Continental 3 221,043 223,499 233,137 247,764Delta 4 554,496 662,308 656,419 598,650Express Jet 5 - - - -Frontier 87,769 121,151 183,425 180,069Great Lakes 6 - - - -Midwest 7 260,693 213,787 229,586 390,746Northwest 8 394,437 414,465 404,162 401,755Skybus 9 - - - -Southwest 1,575,617 1,566,408 1,686,016 1,624,134United 10 380,854 370,314 414,336 308,689US Airways 11 327,658 302,313 299,664 292,579Vanguard 12 456,092 - - -Subtotal - Domestic Air Carrier 5,148,924 4,822,412 5,001,331 4,959,570Foreign Air Carrier 13 15,353 10,105 8,885 12,092Charter 14 27,539 17,754 17,394 14,543TOTAL - ALL AIRLINES 5,191,816 4,850,271 5,027,610 4,986,2051Alaska Airlines began service at MCI in March 2012.2Includes enplanements by Mesa Airlines. America West merged their operations with US Airways.3 Includes enplanements by Chautauqua Airlines and ExpressJet.4 Includes operations by Atlantic Southeast Airlines (ASA), Chautauqua Airlines, Comair, Shuttle America,Skywest, Northwest and Pinnacle airlines.5ExpressJet began operations at Kansas City International Airport effective April 2007 and became d/b/aContinental in 2009.6Great Lakes Airlines began service at MCI in October 2007.7Includes enplanements by Skyway and Republic Airlines. Midwest Airlines merged their operations with FrontierAirlines in April 2010.8Delta and Northwest airlines merged in April 2008.9Skybus began service at MCI in May 2007 and ceased operations in April 2008.10 Includes enplanements by GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines andTransStates Airlines.11 Includes enplanements by Air Wisconsin, Mesa Airlines, PSA Airlines and Republic Airlines.12On July 30, 2002, Vanguard filed for Chapter 11 bankruptcy protection and ceased all operations.13Foreign Air Carrier includes Air Canada and Air Canada Jazz.14 Charter Passenger category includes Allegiant Air, American Trans Air, Miami Air International, RyanInternational, White Cap Air Marshal and Kalitta.Source: Kansas City Aviation Department records.B-25

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Airlines Market ShareCalendar Years 2002 – 2011 and January through April of 20122006 2007 2008 2009 2010 2011 Jan-Apr2012114,950 150,747 145,971 141,601 109,700 105,826 21,884- - - - - - 6,79796,157 51,808 - - - - -608,079 604,717 556,437 480,013 462,277 462,109 144,893280,091 302,053 131,244 262,537 255,855 240,803 72,504553,725 380,040 829,027 842,760 829,929 888,901 265,806- 88,017 200,908 - - - -203,759 202,161 211,542 176,245 326,098 662,912 216,608- 2,201 17,860 21,698 12,380 488 -580,296 714,180 514,480 295,777 194,405 - -482,351 425,780 - - - - -- 22,582 6,684 - - - -1,916,802 2,018,547 1,951,027 1,946,213 1,984,482 1,991,860 628,707441,839 524,378 438,179 436,691 428,677 372,343 111,306243,590 321,433 359,541 309,509 337,886 350,589 109,628- - - - - - -5,521,639 5,808,644 5,362,900 4,913,044 4,941,689 5,075,831 1,578,13310,484 20,923 11,152 8,025 7,651 10,802 2,4148,581 3,092 1,874 1,340 391 1,394 1,2235,540,704 5,832,659 5,375,926 4,922,409 4,949,731 5,088,027 1,581,770(Continued)B-26

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Airlines Market ShareCalendar Years 2002 – 20112002 2003 2004 2005 2006Domestic Air CarrierAirTran 0.2% 1.6% 1.8% 1.8% 2.1%Alaska Airlines 1 0.0% 0.0% 0.0% 0.0% 0.0%America West 2 2.6% 2.6% 2.9% 2.8% 1.7%American 14.4% 15.3% 13.1% 13.7% 11.0%Continental 3 4.3% 4.6% 4.6% 5.0% 5.1%Delta 4 10.7% 13.7% 13.1% 12.0% 10.0%Express Jet 5 0.0% 0.0% 0.0% 0.0% 0.0%Frontier 1.7% 2.5% 3.6% 3.6% 3.7%Great Lakes 6 0.0% 0.0% 0.0% 0.0% 0.0%Midwest 7 5.0% 4.4% 4.6% 7.8% 10.5%Northwest 8 7.6% 8.5% 8.0% 8.1% 8.7%Skybus 9 0.0% 0.0% 0.0% 0.0% 0.0%Southwest 30.3% 32.3% 33.5% 32.6% 34.6%United 10 7.3% 7.6% 8.2% 6.2% 8.0%US Airways 11 6.3% 6.2% 6.0% 5.9% 4.4%Vanguard 12 8.8% 0.0% 0.0% 0.0% 0.0%Subtotal - Domestic Air Carrier 99.2% 99.4% 99.5% 99.5% 99.7%Foreign Air Carrier 13 0.3% 0.2% 0.2% 0.2% 0.2%Charter 14 0.5% 0.4% 0.3% 0.3% 0.2%TOTAL - ALL AIRLINES 100.0% 100.0% 100.0% 100.0% 100.0%1Alaska Airlines began service at MCI in March 2012.2Includes enplanements by Mesa Airlines. America West merged their operations with US Airways.3Includes enplanements by Chautauqua Airlines, and ExpressJet.4Includes operations by Atlantic Southeast Airlines (ASA), Chautauqua Airlines, Comair, Shuttle America,SkyWest, Northwest and Pinnacle airlines.5ExpressJet began operations at Kansas City International Airport effective April 2007 and became d/b/aContinental in 2009.6Great Lakes Airlines began service at MCI in October 2007.7Includes enplanements by Skyway, and Republic Airlines. Midwest Airlines merged their operations with FrontierAirlines in April 2010.8Delta and Northwest airlines merged in April 2008.9Skybus began service at MCI in May 2007 and ceased operations in April 2008.10Includes enplanements by GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines andTransStates Airlines.11Includes enplanements by Air Wisconsin, Mesa Airlines, PSA Airlines and Republic Airlines.12On July 30, 2002, Vanguard filed for Chapter 11 bankruptcy protection and ceased all operations.13Foreign Air Carrier includes Air Canada and Air Canada Jazz.14Charter Passenger category includes Allegiant Air, American Trans Air, Miami Air International, RyanInternational, White Cap Air Marshal and Kalitta.Source: Kansas City Aviation Department records.B-27

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Airlines Market ShareCalendar Years 2002 – 20112007 2008 2009 2010 20112.6% 2.7% 2.9% 2.2% 2.1%0.0% 0.0% 0.0% 0.0% 0.0%0.9% 0.0% 0.0% 0.0% 0.0%10.4% 10.4% 9.8% 9.3% 9.1%5.2% 2.4% 5.3% 5.2% 4.7%6.5% 15.4% 17.1% 16.8% 17.5%1.5% 3.7% 0.0% 0.0% 0.0%3.5% 3.9% 3.6% 6.6% 13.0%0.0% 0.3% 0.4% 0.3% 0.0%12.2% 9.6% 6.0% 3.9% 0.0%7.3% 0.0% 0.0% 0.0% 0.0%0.4% 0.1% 0.0% 0.0% 0.0%34.6% 36.3% 39.5% 40.1% 39.1%9.0% 8.2% 8.9% 8.7% 7.3%5.5% 6.7% 6.3% 6.8% 6.9%0.0% 0.0% 0.0% 0.0% 0.0%99.6% 99.8% 99.8% 99.8% 99.8%0.4% 0.2% 0.2% 0.2% 0.2%0.1% 0.0% 0.0% 0.0% 0.0%100.0% 100.0% 100.0% 100.0% 100.0%B-28

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of MCI Aircraft OperationsCalendar Years 1991 – 2011Commuter/GeneralYear Air Carrier 1 Air Taxi All-Cargo 2 Aviation 3 Military Total1991 111,295 40,068 6,730 17,088 1,647 176,8281992 103,060 50,313 6,738 15,600 1,805 177,5161993 110,119 49,327 10,086 17,319 1,964 188,8151994 114,629 54,989 14,642 17,490 1,320 203,0701995 118,433 58,602 10,854 15,420 1,044 204,3531996 113,992 55,612 12,386 14,234 960 197,1841997 123,889 61,518 12,092 13,386 679 211,5641998 125,385 61,009 13,548 12,029 534 212,5051999 145,912 48,210 12,232 12,499 963 219,8162000 151,298 43,487 11,560 11,253 714 218,3122001 148,178 36,818 14,834 8,793 1,074 209,6972002 137,500 35,837 9,146 8,008 834 191,3252003 116,367 35,826 9,526 8,302 737 170,7582004 117,575 31,988 10,584 8,473 715 169,3352005 101,007 32,439 9,580 12,025 934 155,9852006 119,695 36,553 6,858 14,544 816 178,4662007 132,202 53,942 6,040 7,995 830 201,0092008 120,341 48,796 5,070 6,907 673 181,7872009 106,235 37,372 3,016 6,027 689 153,3392010 106,712 32,526 2,854 5,671 843 148,6062011 105,042 31,328 2,884 4,239 1,055 144,5481 Includes aircraft operations by domestic air carriers, Air Canada and charter operations.2 Cargo operations based on Schedule of Commercial Aircraft Landings - Cargo.In 2007, the substitution from small freighters to medium-sized freighters resulted in fewer total overall airoperations by the all-cargo airlines.3 General Aviation includes civil itinerant and local aircraft operations.Source: Kansas City Aviation Department based on FAA Airport Operations Monthly Summary.B-29

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Enplaned CargoCalendar Years 1991 – 2011 and January – April 2003 – 2012Mail Air Freight Total CargoYear Weight (000 lbs) % of Total Weight (000 lbs) % of Total (000 lbs)1991 36,079 38.1% 58,557 61.9% 94,6361992 43,848 39.9% 65,952 60.1% 109,8001993 49,446 37.5% 82,313 62.5% 131,7591994 54,921 35.3% 100,577 64.7% 155,4981995 57,934 38.3% 93,182 61.7% 151,1161996 58,627 36.1% 103,635 63.9% 162,2621997 54,244 33.3% 108,818 66.7% 163,0621998 51,036 28.2% 129,840 71.8% 180,8761999 49,380 27.3% 131,349 72.7% 180,7292000 54,598 31.1% 120,696 68.9% 175,2942001 44,566 26.4% 124,057 73.6% 168,6232002 35,227 23.9% 112,454 76.1% 147,6812003 35,293 24.4% 109,117 75.6% 144,4102004 34,836 22.4% 120,761 77.6% 155,5972005 33,371 22.0% 118,124 78.0% 151,4952006 33,499 22.3% 116,619 77.7% 150,1182007 10,332 7.1% 135,733 92.9% 146,0652008 7,336 5.9% 117,363 94.1% 124,6992009 5,420 5.6% 91,111 94.4% 96,5312010 4,054 4.3% 90,624 95.7% 94,6782011 2,821 3.0% 90,941 97.0% 93,762Jan - Apr 2003 11,014 22.8% 37,355 77.2% 48,369Jan - Apr 2004 11,795 23.1% 39,226 76.9% 51,021Jan - Apr 2005 11,341 23.4% 37,154 76.6% 48,495Jan - Apr 2006 11,135 23.6% 36,093 76.4% 47,228Jan - Apr 2007 1 4,290 9.3% 42,059 90.7% 46,349Jan - Apr 2008 2,515 5.7% 41,829 94.3% 44,344Jan - Apr 2009 1,874 5.7% 31,133 94.3% 33,007Jan - Apr 2010 1,603 5.3% 28,551 94.7% 30,154Jan - Apr 2011 1,311 4.3% 29,013 95.7% 30,324Jan - Apr 2012 836 2.8% 28,764 97.2% 29,6001 2007 data incorporates a change in reporting methodology between Mail and Air Freight weights.Source: Kansas City Aviation Department records.B-30

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft Landed Weight by Airline (pounds in thousands)Calendar Years 2002 – 2011 and January through April 2011 and 20122002 2003 % Change 2004 % ChangeDomestic Air CarrierAirTran 25,782 113,132 338.8% 132,080 16.7%Alaska Airlines (1) - - 0.0% - 0.0%America West (2) 175,548 129,851 -26.0% 134,495 3.6%American 1,209,367 1,198,838 -0.9% 929,788 -22.4%Continental (3) 311,412 289,793 -6.9% 288,378 -0.5%Delta (4) 792,817 825,915 4.2% 820,749 -0.6%ExpressJet (5) - - 0.0% - 0.0%Frontier 144,565 156,705 8.4% 260,631 66.3%Great Lakes Airlines (6) - - 0.0% - 0.0%Midwest (7) 695,167 542,387 -22.0% 526,860 -2.9%Northwest (8) 587,897 590,625 0.5% 600,622 1.7%Skybus (9) - - 0.0% - 0.0%Southwest 3,025,830 2,924,833 -3.3% 2,785,553 -4.8%United (10) 538,592 478,661 -11.1% 533,996 11.6%US Airways (11) 454,183 392,981 -13.5% 341,635 -13.1%Vanguard (12) 754,930 - -100.0% - 0.0%Subtotal - Domestic Air Carrier 8,716,090 7,643,721 -12.3% 7,354,787 -3.8%CommuterAir Midwest 151,049 66,604 -55.9% 48,147 -27.7%Air Wisconsin - 32,801 0.0% 58,828 79.3%Subtotal - Commuter 151,049 99,405 -34.2% 106,975 7.6%Foreign Air CarrierAir Canada (13) 30,562 6,940 -77.3% 2,861 -58.8%Air Canada Jazz - 16,544 100.0% 15,309 -7.5%Subtotal - Foreign Carrier 30,562 23,484 -23.2% 18,170 -22.6%Charter (14) 65,694 28,717 -56.3% 18,579 -35.3%All-Cargo CarrierAir Cargo Carriers, Inc (15) 7,548 11,491 52.2% 11,551 0.5%Airborne Express 87,242 92,295 5.8% 96,806 4.9%BAX Global 74,342 79,121 6.4% 81,293 2.7%DHL Airways/DHL Express 76,092 82,015 7.8% 81,760 -0.3%Emery Worldwide (16) 84,846 98,800 16.4% 112,388 13.8%Federal Express 310,350 291,237 -6.2% 323,636 11.1%Kitty Hawk International Inc. 75,773 66,788 -11.9% 66,759 0.0%UPS 129,519 127,804 -1.3% 134,479 5.2%Others (17) - 294 100.0% 1,068 263.3%Subtotal - Cargo 845,712 849,845 0.5% 909,740 7.0%TOTAL - ALL AIRLINES 9,809,107 8,645,172 -11.9% 8,408,251 -2.7%(1) Alaska Airlines began service at MCI in March 2012.(2) Includes operations by Mesa Airlines. America West merged their operations with US Airways.(3) Includes operations by Chautauqua Airlines and ExpressJet.(4) Includes operations by Atlantic Southeast Airlines (ASA), Chautauqua Airlines, Comair, Shuttle America,Skywest, Northwest and Pinnacle airlines.(5) ExpressJet began operations at Kansas City International Airport effective April 2007 and has ceasedoperations under its own brand as of September 2008.(6) Great Lakes Airlines began service at MCI in October 2007.(7) Includes operations by Skyway and Republic Airlines. Midwest Airlines merged their operations withFrontier Airlines in April 2010.(8) Delta and Northwest airlines merged in April 2008.Source: Kansas City Aviation Department records.B-31

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft Landed Weight by Airline (pounds in thousands)Calendar Years 2002 – 2011 and January through April 2011 and 20122005 % Change 2006 % Change 2007 % Change 2008 % Change111,800 -15.4% 137,928 23.4% 177,912 29.0% 174,464 -1.9%- 0.0% - 0.0% - 0.0% - 0.0%133,264 -0.9% 104,050 -21.9% 54,495 -47.6% - -100.0%930,726 0.1% 748,395 -19.6% 765,756 2.3% 700,276 -8.6%273,113 -5.3% 287,355 5.2% 317,671 10.6% 70,235 -77.9%744,378 -9.3% 560,371 -24.7% 505,761 -9.7% 911,771 80.3%- 0.0% - 0.0% 141,211 100.0% 289,754 105.2%290,139 11.3% 300,042 3.4% 301,268 0.4% 273,025 -9.4%- 0.0% - 0.0% 7,595 100.0% 61,645 711.7%679,256 28.9% 940,668 38.5% 1,188,964 26.4% 871,038 -26.7%604,984 0.7% 553,221 -8.6% 523,747 -5.3% - -100.0%- 0.0% - 0.0% 30,589 100.0% 12,125 -60.4%2,504,612 -10.1% 2,774,700 10.8% 2,906,770 4.8% 2,874,198 -1.1%454,497 -14.9% 628,764 38.3% 675,725 7.5% 704,240 4.2%291,047 -14.8% 211,458 -27.3% 320,128 51.4% 352,776 10.2%- 0.0% - 0.0% - 0.0% - 0.0%7,017,816 -4.6% 7,246,952 3.3% 7,917,592 9.3% 7,295,547 -7.9%50,647 5.2% 65,006 28.4% 112,000 72.3% 48,140 -57.0%59,126 0.5% 62,933 6.4% 26,179 -58.4% 22,043 -15.8%109,773 2.6% 127,939 16.5% 138,179 8.0% 70,183 -49.2%16,887 490.2% 1,280 -92.4% - -100.0% - 0.0%1,692 -88.9% 18,424 988.9% 16,638 -9.7% 17,418 4.7%18,579 2.3% 19,704 6.1% 16,638 -15.6% 17,418 4.7%48,892 163.2% 10,209 -79.1% 7,141 -30.1% 6,841 -4.2%7,910 -31.5% - -100.0% - 0.0% - 0.0%98,453 1.7% 125,294 27.3% 108,940 -13.1% 61,102 -43.9%73,976 -9.0% 77,424 4.7% 74,873 -3.3% 73,229 -2.2%73,440 -10.2% 34,971 -52.4% 7,620 -78.2% 45,312 494.6%34,558 -69.3% - -100.0% - 0.0% - 0.0%306,157 -5.4% 311,108 1.6% 306,456 -1.5% 276,235 -9.9%66,062 -1.0% 61,004 -7.7% 42,726 -30.0% - -100.0%132,613 -1.4% 124,862 -5.8% 126,322 1.2% 127,190 0.7%64,178 5909.2% 45,194 -29.6% 2,898 -93.6% 3,051 5.3%857,347 -5.8% 779,857 -9.0% 669,835 -14.1% 586,119 -12.5%8,052,407 -4.2% 8,184,661 1.6% 8,749,385 6.9% 7,976,108 -8.8%(9) Skybus began service at MCI in May 2007 and ceased operations in April 2008.(10) Includes operations by GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines and TransStates Airlines.(11) Includes operations by Air Wisconsin, Mesa Airlines, PSA Airlines and Republic Airlines.(12) On July 30, 2002, Vanguard filed for Chapter 11 bankruptcy protection and ceased all operations.(13) Effective 2007, Air Canada's operations are reported together with Air Canada Jazz's operations.(14) Charter Passenger category includes Allegiant Air, American Trans Air, Miami Air International, Ryan International andWhite Cap Air Marshal.(15) Air Cargo Carriers left the KCI market in 2006.(16) Emery Worldwide and UPS merged in 2006.(17) Includes Ameriflight, Inc., Cargo Jet, Kalitta Air, Mountain Air, Skyway Enterprise and UPS Supply Chain Solutions.(Continued)B-32

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft Landed Weight by Airline (pounds in thousands)Calendar Years 2002 – 2011 and January through April 2011 and 20122009 % Change 2010 % Change 2011 % ChangeDomestic Air CarrierAirTran 166,256 -4.7% 132,224 -20.5% 129,024 -2.4%Alaska Airlines (1) - 0.0% - 0.0% - 0.0%America West (2) - 0.0% - 0.0% - 0.0%American 616,047 -12.0% 578,878 -6.0% 559,265 -3.4%Continental (3) 272,828 288.5% 278,303 2.0% 278,233 0.0%Delta (4) 1,000,224 9.7% 1,021,228 2.1% 1,057,106 3.5%ExpressJet (5) - -100.0% - 0.0% - 0.0%Frontier 241,234 -11.6% 384,057 59.2% 765,298 99.3%Great Lakes Airlines (6) 92,040 49.3% 41,527 -54.9% 2,163 -94.8%Midwest (7) 455,422 -47.7% 289,803 -36.4% - -100.0%Northwest (8) - 0.0% - 0.0% - 0.0%Skybus (9) - -100.0% - 0.0% - 0.0%Southwest 2,607,872 -9.3% 2,568,748 -1.5% 2,560,228 -0.3%United (10) 614,144 -12.8% 589,180 -4.1% 441,580 -25.1%US Airways (11) 362,354 2.7% 433,996 19.8% 448,282 3.3%Vanguard (12) - 0.0% - 0.0% - 0.0%Subtotal - Domestic Air Carrier 6,428,421 -11.9% 6,317,944 -1.7% 6,241,179 -1.2%CommuterAir Midwest - -100.0% - 0.0% - 0.0%Air Wisconsin 22,983 4.3% - -100.0% - 0.0%Subtotal - Commuter 22,983 -67.3% - -100.0% - 0.0%Foreign Air CarrierAir Canada (13) - 0.0% - 0.0% - 0.0%Air Canada Jazz 14,617 -16.1% 15,087 3.2% 16,779 11.2%Subtotal - Foreign Carrier 14,617 -16.1% 15,087 3.2% 16,779 11.2%Charter (14) 6,343 -7.3% 4,926 -22.3% 9,433 91.5%All-Cargo CarrierAir Cargo Carriers, Inc. (15) - 0.0% - 0.0% - 0.0%Airborne Express 17,952 -70.6% - -100.0% - 0.0%BAX Global 52,771 -27.9% 44,961 -14.8% 44,642 -0.7%DHL Airways/DHL Express 711 -98.4% 2,200 209.4% 2,475 12.5%Emery Worldwide (16) - 0.0% - 0.0% - 0.0%Federal Express 251,154 -9.1% 246,866 -1.7% 259,764 5.2%Kitty Hawk International Inc. - 0.0% - 0.0% - 0.0%UPS 128,554 1.1% 128,283 -0.2% 127,022 -1.0%Others (17) 581 -81.0% 2,605 348.4% 3,340 28.2%Subtotal - Cargo 451,723 -22.9% 424,915 -5.9% 437,243 2.9%TOTAL - ALL AIRLINES 6,924,087 -13.2% 6,762,872 -2.3% 6,704,634 -0.9%(1) Alaska Airlines began service at MCI in March 2012.(2) Includes operations by Mesa Airlines. America West merged their operations with US Airways.(3) Includes operations by Chautauqua Airlines and ExpressJet.(4) Includes operations by Atlantic Southeast Airlines (ASA), Chautauqua Airlines, Comair, Shuttle America,Skywest, Northwest and Pinnacle airlines.(5) ExpressJet began operations at Kansas City International Airport effective April 2007 and has ceasedoperations under its own brand as of September 2008.(6) Great Lakes Airlines began service at MCI in October 2007.(7) Includes operations by Skyway and Republic Airlines. Midwest Airlines merged their operations withFrontier Airlines in April 2010.(8) Delta and Northwest airlines merged in April 2008.Source: Kansas City Aviation Department records.B-33

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft Landed Weight by Airline (pounds in thousands)Calendar Years 2002 – 2011 and January through April 2011 and 2012Jan-Apr11Jan-Apr1243,408 35,904- 7,346- -182,229 171,64086,394 82,782305,945 326,421- -223,786 245,0192,163 -- -- -- -817,282 830,458138,417 132,356142,664 153,620- -1,942,288 1,985,546- -- -- -- -5,405 5,6405,405 5,6403,193 4,745- -- -14,345 13,6741,100 275- -84,722 81,630- -39,109 41,072958 1,401140,234 138,0522,091,120 2,133,983(9) Skybus began service at MCI in May 2007 and ceased operations in April 2008.(10) Includes operations by GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines and TransStates Airlines.(11) Includes operations by Air Wisconsin, Mesa Airlines, PSA Airlines and Republic Airlines.(12) On July 30, 2002, Vanguard filed for Chapter 11 bankruptcy protection and ceased all operations.(13) Effective 2007, Air Canada's operations are reported together with Air Canada Jazz's operations.(14) Charter Passenger category includes Allegiant Air, American Trans Air, Miami Air International, Ryan International andWhite Cap Air Marshal.(15) Air Cargo Carriers left the KCI market in 2006.(16) Emery Worldwide and UPS merged in 2006.(17) Includes Ameriflight, Inc., Cargo Jet, Kalitta Air, Mountain Air, Skyway Enterprise and UPS Supply Chain Solutions.B-34

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft LandingsCalendar Years 2002 – 2011 and January through April 2011 and 2012Airline 2002 2003 2004 2005 2006Domestic Air CarrierAirTran 248 1,088 1,270 1,075 1,326Alaska Airlines (1) - - - - -America West (2) 1,516 1,140 1,171 1,047 1,012American 8,753 8,876 7,283 7,300 5,885Continental (3) 3,905 4,174 4,735 5,329 5,776Delta (4) 6,831 8,553 8,794 7,875 6,473ExpressJet (5) - - - - -Frontier 1,287 1,329 2,022 2,220 2,249Great Lakes Airlines (6) - - - - -Midwest (7) 6,754 5,135 5,109 6,540 9,188Northwest (8) 5,464 5,593 5,739 6,631 5,931Skybus (9) - - - - -Southwest 25,641 24,706 23,437 21,225 23,433United (10) 4,405 3,966 4,506 3,536 5,606US Airways (11) 3,623 3,517 3,957 3,515 2,592Vanguard (12) 6,233 - - - -Subtotal - Domestic Air Carrier 74,660 68,077 68,023 66,293 69,471CommuterAir Midwest 9,027 3,978 2,898 3,051 3,916Air Wisconsin - 643 1,251 1,258 1,339Subtotal - Commuter 9,027 4,621 4,149 4,309 5,255Foreign Air CarrierAir Canada (13) 605 140 61 356 4Air Canada Jazz - 352 325 36 392Subtotal - Foreign Carrier 605 492 386 392 396Charter (14) 424 229 117 674 72All-Cargo CarrierAir Cargo Carriers, Inc. (15) 334 508 510 350 -Airborne Express 575 834 946 794 523BAX Global 395 468 477 432 438DHL Airways/DHL Express 509 514 511 456 199Emery Worldwide (16) 521 607 693 214 -Federal Express 1,202 1,106 1,226 1,113 1,086Kitty Hawk International Inc. 542 423 439 437 432UPS 495 470 483 474 472Others (17) - 3 7 399 280Subtotal - Cargo 4,573 4,933 5,292 4,669 3,430TOTAL - ALL AIRLINES 89,289 78,352 77,967 76,337 78,624(1) Alaska Airlines began service at MCI in March 2012.(2) Includes operations by Mesa Airlines. America West merged their operations with US Airways.(3) Includes operations by Chautauqua Airlines and ExpressJet.(4) Includes operations by Atlantic Southeast Airlines (ASA), Chautauqua Airlines, Comair, Shuttle America,Skywest, Northwest and Pinnacle airlines.(5) ExpressJet began operations at Kansas City International Airport effective April 2007 and has ceasedoperations under its own brand as of September 2008.(6) Great Lakes Airlines began service at MCI in October 2007.(7) Includes operations by Skyway and Republic Airlines. Midwest Airlines merged their operations withFrontier Airlines in April 2010.(8) Delta and Northwest airlines merged in April 2008.Source: Kansas City Aviation Department records.B-35

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft LandingsCalendar Years 2002 – 2011 and January through April 2011 and 20122007 2008 2009 2010 2011 Jan-Apr11 Jan-Apr121,659 1,675 1,594 1,264 1,221 407 339- - - - - - 51483 - - - - - -7,380 6,607 4,959 5,286 5,099 1,658 1,7276,068 1,089 5,919 6,106 5,893 1,884 1,8305,476 10,877 11,683 10,869 11,175 3,358 3,5633,272 6,685 - - - - -2,261 2,041 1,829 3,776 7,692 2,447 2,225453 3,677 5,490 2,477 129 129 -12,843 9,676 5,290 3,514 - - -5,817 - - - - - -222 88 - - - - -24,621 23,922 21,655 21,335 21,216 6,790 6,8606,237 5,700 5,450 5,976 6,461 1,983 2,1873,494 4,138 3,960 4,294 4,328 1,373 1,426- - - - - - -80,286 76,175 67,829 64,897 63,214 20,029 20,2086,747 2,900 - - - - -557 469 489 - - - -7,304 3,369 489 - - - -- - - - - - -354 370 311 321 357 115 120354 370 311 321 357 115 12047 49 47 35 66 22 34- - - - - - -648 428 66 - - - -420 427 313 271 268 88 8445 279 3 8 9 4 1- - - - - - -1,069 949 842 812 828 264 262326 - - - - - -462 398 271 286 281 85 9250 54 13 50 56 14 173,020 2,535 1,508 1,427 1,442 455 45691,011 82,498 70,184 66,680 65,079 20,621 20,818(9) Skybus began service at MCI in May 2007 and ceased operations in April 2008.(10) Includes operations by GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines and TransStates Airlines.(11) Includes operations by Air Wisconsin, Mesa Airlines, PSA Airlines and Republic Airlines.(12) On July 30, 2002, Vanguard filed for Chapter 11 bankruptcy protection and ceased all operations.(13) Effective 2007, Air Canada's operations are reported together with Air Canada Jazz's operations.(14) Charter Passenger category includes Allegiant Air, American Trans Air, Miami Air International, Ryan International andWhite Cap Air Marshal.(15) Air Cargo Carriers left the KCI market in 2006.(16) Emery Worldwide and UPS merged in 2006.(17) Includes Ameriflight, Inc., Cargo Jet, Kalitta Air, Mountain Air, Skyway Enterprise and UPS Supply Chain Solutions.(Continued)B-36

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft LandingsCalendar Years 2002 – 2011 and January through April 2011 and 2012Percent ChangeAirline 2001-02 2002-03 2003-04 2004-05 2005-06Domestic Air CarrierAirTran 100.0% 338.7% 16.7% -15.4% 23.3%Alaska Airlines (1) N/A N/A N/A N/A N/AAmerica West (2) -6.2% -24.8% 2.7% -10.6% -3.3%American 52.0% 1.4% -17.9% 0.2% -19.4%Continental (3) -1.1% 6.9% 13.4% 12.5% 8.4%Delta (4) 3.9% 25.2% 2.8% -10.5% -17.8%ExpressJet (5) N/A N/A N/A N/A N/AFrontier 29.9% 3.3% 52.1% 9.8% 1.3%Great Lakes Airlines (6) N/A N/A N/A N/A N/AMidwest (7) 9.6% -24.0% -0.5% 28.0% 40.5%Northwest (8) -0.6% 2.4% 2.6% 15.5% -10.6%Skybus (9) N/A N/A N/A N/A N/ASouthwest -3.2% -3.6% -5.1% -9.4% 10.4%TWA (10) -100.0% N/A N/A N/A N/AUnited (11) -2.0% -10.0% 13.6% -21.5% 58.5%US Airways (12) -22.1% -2.9% 12.5% -11.2% -26.3%Vanguard (13) -30.3% -100.0% N/A N/A N/ASubtotal - Domestic Air Carrier -4.8% -8.8% -0.1% -2.5% 4.8%CommuterAir Midwest -25.5% -55.9% -27.1% 5.3% 28.4%Air Wisconsin N/A N/A N/A 94.6% 0.6%Subtotal - Commuter -25.5% -48.8% -10.2% 3.9% 22.0%Foreign Air CarrierAir Canada (14) -27.5% -76.9% -56.4% 483.6% -98.9%Air Canada Jazz N/A N/A -7.7% -88.9% 988.9%Subtotal - Foreign Carrier -27.5% -18.7% -21.5% 1.6% 1.0%Charter (15) -44.4% -46.0% -48.9% 476.1% -89.3%All-Cargo CarrierAir Cargo Carriers, Inc. (16) 34.7% 52.1% 0.4% -31.4% -100.0%Airborne Express -3.0% 45.0% 13.4% -16.1% -34.1%Capitol Cargo/BAX Global (17) -18.4% 18.5% 1.9% -9.4% 1.4%DHL Airways/DHL Express 0.8% 1.0% -0.6% -10.8% -56.4%Emery Worldwide (18) 9.9% 16.5% 14.2% -69.1% -100.0%Federal Express 20.2% -8.0% 10.8% -9.2% -2.4%Kitty Hawk International Inc. 26.0% -22.0% 3.8% -0.5% -1.1%UPS -5.9% -5.1% 2.8% -1.9% -0.4%Others (19) -100.0% N/A 133.3% 5600.0% -29.8%Subtotal - Cargo 1.1% 7.9% 7.3% -11.8% -26.5%TOTAL - ALL AIRLINES -7.6% -12.2% -0.5% -2.1% 3.0%(1) Alaska Airlines began service at MCI in March 2012.(2) Includes operations by Mesa Airlines. America West merged their operations with US Airways.(3) Includes operations by Chautauqua Airlines and ExpressJet.(4) Includes operations by Atlantic Southeast Airlines (ASA), Chautauqua Airlines, Comair, Shuttle America,Skywest, Northwest and Pinnacle airlines.(5) ExpressJet began operations at Kansas City International Airport effective April 2007 and has ceasedoperations under its own brand as of September 2008.(6) Great Lakes Airlines began service at MCI in October 2007.(7) Includes operations by Skyway and Republic Airlines. Midwest Airlines merged their operations withFrontier Airlines in April 2010.(8) Delta and Northwest airlines merged in April 2008.(9) Skybus began service at MCI in May 2007 and ceased operations in April 2008.Source: Kansas City Aviation Department records.B-37

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Commercial Aircraft LandingsCalendar Years 2002 – 2011 and January through April 2011 and 2012Percent Change2006-07 2007-08 2008-09 2009-10 2010-11 Jan-Apr 11-1225.1% 1.0% -4.8% -20.7% -3.4% -16.7%N/A N/A N/A N/A 0.0% 0.0%-52.3% -100.0% N/A N/A N/A N/A25.4% -10.5% -24.9% 6.6% -3.5% 4.2%5.1% -82.1% 443.5% 3.2% -3.5% -2.9%-15.4% 98.6% 7.4% -7.0% 2.8% 6.1%100.0% 104.3% -100.0% 0.0% 0.0% 0.0%0.5% -9.7% -10.4% 106.5% 103.7% -9.1%100.0% 711.7% 49.3% -54.9% -94.8% -100.0%39.8% -24.7% -45.3% -33.6% -100.0% 0.0%-1.9% -100.0% N/A N/A N/A N/A100.0% -60.4% -100.0% 0.0% 0.0% 0.0%5.1% -2.8% -9.5% -1.5% -0.6% 1.0%N/A N/A N/A N/A N/A N/A11.3% -8.6% -4.4% 9.7% 8.1% 10.3%34.8% 18.4% -4.3% 8.4% 0.8% 3.9%N/A N/A N/A N/A N/A N/A15.6% -5.1% -11.0% -4.3% -2.6% 0.9%72.3% -57.0% -100.0% 0.0% 0.0% 0.0%6.4% -58.4% -15.8% 4.3% -100.0% 0.0%39.0% 46.1% -85.5% -100.0% 0.0% 0.0%-100.0% 0.0% 0.0% 0.0% 0.0% 0.0%-9.7% 4.5% -15.9% 3.2% 11.2% 4.3%-10.6% 104.5% -15.9% 3.2% 11.2% 4.3%-34.7% 104.3% 95.9% 74.5% 188.6% 54.5%N/A N/A N/A N/A N/A N/A23.9% -34.0% -84.6% -100.0% 0.0% 0.0%-4.1% 1.7% -26.7% -13.4% -1.1% -4.5%-77.4% 520.0% -98.9% 166.7% 12.5% -75.0%N/A N/A N/A N/A N/A N/A-1.6% -11.2% -11.3% -3.6% 2.0% -0.8%-24.5% -100.0% N/A N/A N/A N/A-2.1% -13.9% -31.9% 5.5% -1.7% 8.2%-82.1% 8.0% -75.9% 284.6% 12.0% 21.4%-12.0% 83.9% -40.5% -5.4% 1.1% 0.2%15.8% -9.4% -14.9% -5.0% -2.4% 1.0%(10) Effective December 2001, TWA's operations are reported together with American's operations.(11) Includes operations by GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines and TransStates Airlines.(12) Includes operations by Air Wisconsin, Mesa Airlines, PSA Airlines and Republic Airlines.(13) On July 30, 2002, Vanguard filed for Chapter 11 bankruptcy protection and ceased all operations.(14) Effective 2007, Air Canada's operations are reported together with Air Canada Jazz's operations.(15) Charter Passenger category includes Allegiant Air, American Trans Air, Miami Air International, Ryan International andWhite Cap Air Marshal.(16) Air Cargo Carriers left the KCI market in 2006.(17) Capitol Cargo replaced BAX Global reporting in 2012.(18) Emery Worldwide and UPS merged in 2006.(19) Includes Ameriflight, Inc., Cargo Jet, Kalitta Air, Mountain Air, Skyway Enterprise and UPS Supply Chain Solutions.B-38

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Annual Parking Revenue by FacilityFor the Last Ten Fiscal YearsTerminal GaragesCircle EEconomy 1OtherTotalYear Revenue % of Total Revenue % of Total Revenue % of Total Revenue % of Total Revenue % ChangeB-39FY03 $ 15,746,191 49.4% $ 4,021,795 12.6% $ 10,776,766 33.8% $ 1,324,389 4.2% $ 31,869,141FY04 16,497,560 49.6% 4,110,987 12.3% 11,072,774 33.3% 1,612,029 4.8% 33,293,350 4.5%FY05 16,906,542 48.9% 4,239,169 12.2% 11,821,526 34.2% 1,639,988 4.7% 34,607,225 3.9%FY06 18,511,844 51.8% 4,341,514 12.1% 11,698,517 32.7% 1,218,066 3.4% 35,769,941 3.4%FY07 2 20,876,486 52.2% 4,847,065 12.1% 13,098,510 32.7% 1,210,880 3.0% 40,032,941 11.9%FY08 3 23,393,010 53.1% 4,920,006 11.2% 14,261,637 32.4% 1,432,352 3.3% 44,007,005 9.9%FY09 4 20,595,087 51.1% 4,538,979 11.3% 13,760,166 34.1% 1,409,059 3.5% 40,303,291 -8.4%FY10 5 19,739,644 49.3% 4,414,251 11.0% 13,684,041 34.2% 2,221,657 5.5% 40,059,593 -0.6%FY11 6 21,356,689 49.2% 4,799,590 11.1% 14,250,010 32.9% 2,960,538 6.8% 43,366,827 8.3%FY12 7 21,865,158 47.3% 5,131,066 11.1% 14,755,871 32.0% 4,415,587 9.6% 46,167,682 6.5%1The Economy Lot replaced the Satellite Lot in January 2004.2FYE07 Terminal Garages: A, $6,013,307; B, $9,351,963; C, $5,511,216.3FYE08 Terminal Garages: A, $6,886,882; B, $9,862,711; C, $6,643,417.4FYE09 Terminal Garages: A, $5,286,547; B, $9,752,915; C, $5,555,625.5FYE10 Terminal Garages: A, $4,572,547; B, $11,036,687; C, $4,130,410.6FYE11 Terminal Garages: A, $7,034,097; B, $9,828,886; C, $4,493,706.7FYE12 Terminal Garages: A, $3,582,089; B, $12,315,055; C, $5,968,014.

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical Airline Cost Per Enplaned PassengerFor the Last Ten Fiscal YearsCostTerminal Terminal Passenger perFiscal Landing Building Apron Boarding Enplaned EnplanedYear Fees 1 Rents Fees Bridges Total Passengers 2 Passenger2003 $ 8,628,009 $ 6,699,753 $ 2,638,202 $ - $ 17,965,964 4,987,421 $ 3.602004 8,534,887 6,637,060 1,694,001 750,258 17,616,206 4,905,086 3.592005 8,518,469 6,767,040 1,609,869 727,236 17,622,614 5,036,889 3.502006 9,787,460 8,265,270 1,159,624 1,122,862 20,335,216 5,112,330 3.982007 11,518,934 8,798,380 1,486,668 616,804 22,420,786 5,610,488 4.002008 12,174,446 9,919,574 1,897,767 609,352 24,601,138 5,905,988 4.172009 11,991,875 10,594,929 1,651,618 844,945 25,083,367 5,058,885 4.962010 12,952,637 9,355,593 1,698,382 559,298 24,565,910 4,939,032 4.972011 13,111,314 9,202,970 1,622,975 1,061,492 24,998,750 4,945,779 5.052012 3 14,950,290 9,309,597 1,785,290 1,869,638 27,914,815 5,198,808 5.371 Excludes airfield fees paid by cargo carriers.2Enplanements on a fiscal year basis, annual enplanements shown on Schedule ofAnnual Passenger Enplanements are presented on a calendar year basis.3 Reflects Use and Lease Agreement. Amounts provided are preliminary settlementsamounts and are subject to change.B-40

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Total Airport System Revenue and ExpensesFor the Last Ten Fiscal YearsAirport Revenues/Expenses 2003 2004 2005 2006Revenues and Expenses per GAAPOperating revenues $ 68,051,446 $ 69,373,717 $ 70,918,962 $ 80,379,819Operating expenses (78,424,159) (77,821,730) (89,408,880) (109,676,767)Operating loss (10,372,713) (8,448,013) (18,489,918) (29,296,948)Other income, net 23,240,441 19,612,586 14,384,747 52,963,041Net income 12,867,728 11,164,573 (4,105,171) 23,666,093Net Revenues Available for GARB Debt ServiceTotal revenues 80,101,402 78,973,729 78,908,534 92,067,188Total expenses (51,131,232) (49,211,704) (50,470,970) (60,055,642)Net revenues 28,970,170 29,762,025 28,437,564 32,011,546Net Income per GAAP 12,867,728 11,164,573 (4,105,171) 23,666,093Add Back 1Depreciation expense 27,159,055 28,400,493 38,649,530 49,267,402Interest expense on bonds 15,698,287 9,324,298 14,675,769 19,186,893Other post-employment benefits 2 - - - -Amortization of bond costs 133,872 209,533 288,380 353,723Nonoperating expense (other) 348,165 91,017 328,082 2,885,999Deduct 3PFC revenue (13,686,560) (13,879,589) (13,655,542) (20,252,999)Capital grant revenue (7,450,857) (3,258,011) (5,816,648) (40,897,885)Transfer from Special Facility Fund - - - -Interest income on PFCs and bond accounts 4 (5,270,678) (741,224) (61,522) (750,752)Other adjustments - - - -Other nonoperating revenue 5, 6 (163,840) (187,230) (614,809) (210,810)Richards-Gebaur operating revenues (665,002) (1,361,835) (1,250,505) (1,236,118)Net Revenues Available for Debt Service $ 28,970,170 $ 29,762,025 $ 28,437,564 $ 32,011,5461 Included in expenses presented pursuant to GAAP, but not included in expenses for operating and maintaining the airportspursuant to the bond ordinances.2FY2008 data incorporates a change in reporting methodology.3 Included in revenues presented pursuant to GAAP, but not included in revenues available to pay debt service on GARBspursuant to the bond ordinances.4Interest income on unspent PFC funds; unspent Series 2001 PFC Bond proceeds; and the balances in the accounts establishedpursuant to the bond ordinances.5 The FY2002 adjustments in the bottom of the table have been restated since the continuing disclosure information was prepared in 2003.6 The FY2003 adjustments in the bottom of the table have been restated since the continuing disclosure information was prepared in 2004.B-41

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Total Airport System Revenue and ExpensesFor the Last Ten Fiscal Years2007 2008 2009 2010 2011 2012$ 95,455,051 $ 104,106,482 $ 102,083,957 $ 96,738,412 $ 100,818,950 $ 106,920,946(125,426,950) (135,967,104) (138,947,252) (138,073,411) (132,474,406) (133,328,198)(29,971,899) (31,860,622) (36,863,295) (41,334,999) (31,655,456) (26,407,252)36,542,423 48,083,552 34,514,933 39,923,075 50,835,848 32,932,8166,570,524 16,222,930 (2,348,362) (1,411,924) 19,180,392 6,525,564111,497,200 121,891,583 114,594,245 104,627,524 108,861,897 115,372,490(71,482,311) (76,996,221) (77,314,813) (78,450,515) (78,363,702) (76,514,182)40,014,889 44,895,362 37,279,432 26,177,008 30,498,195 38,858,3086,570,524 16,222,930 (2,348,362) (1,411,924) 19,180,392 6,525,56453,587,091 57,672,448 59,898,853 57,878,343 53,418,701 55,293,21418,105,307 18,883,495 17,680,222 16,546,951 14,777,031 14,090,771- 940,887 1,367,511 1,402,669 359,595 1,188,393357,548 357,548 366,076 341,884 332,408 332,408273,961 182,266 226,806 275,704 253,827 1,201,653(24,097,730) (23,822,136) (20,159,368) (20,532,775) (20,454,358) (20,887,024)(11,915,287) (20,731,257) (17,912,602) (26,766,354) (16,647,390) (17,074,691)- - - - (19,341,408) -(1,195,973) (1,782,281) (1,637,625) (1,037,487) (1,029,302) (912,974)- - - - - -(377,681) (2,923,404) (202,079) (520,002) (351,300) (899,006)(1,292,871) (105,135) - - - -$ 40,014,889 $ 44,895,362 $ 37,279,432 $ 26,177,008 $ 30,498,195 $ 38,858,308B-42

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical Operating and Maintenance ExpensesFor the Last Ten Fiscal Years2003 2004 2005 2006 4By Expense CategorySalaries, wages and benefits $ 22,365,738 $ 21,120,771 $ 22,168,647 $ 24,007,384Contractual services 26,280,324 25,474,042 25,680,324 33,071,060Commodities and supplies 2,485,170 2,616,891 2,621,999 2,977,198Total O&M Expenses $ 51,131,232 $ 49,211,704 $ 50,470,970 $ 60,055,642By Cost CenterAirline Cost CentersDirectRunways and taxiways $ 2,082,982 $ 2,228,110 $ 3,770,627 $ 9,652,301Terminal buildings 1 6,433,716 4,845,484 5,275,536 18,938,426Terminal aprons 850,807 862,742 947,392 1,132,334Passenger boarding bridges 669,095 735,256 823,947 1,486,639IndirectGeneral administrative 12,892,215 11,671,654 12,993,082 -Airport police 5,243,102 4,733,097 4,614,541 -Heating, cooling and ventilation - - - -ARFF 2,474,258 2,544,812 2,585,979 -Terminal building structural - - - -Field maintenance administration 862,717 929,613 1,034,322 -Other 2 1,303,520 2,730,044 2,021,550 -Total - Airline Cost Centers 32,812,412 31,280,812 34,066,976 31,209,700Non-Airline Cost Centers 3 18,318,820 17,930,892 16,403,994 28,845,942Total O&M Expenses $ 51,131,232 $ 49,211,704 $ 50,470,970 $ 60,055,6421 In order to simplify the cost center listing, the heating, cooling and ventilation cost center and theterminal building structural cost center are combined into the terminal building cost center forFYE04. Both of those cost centers are allocated 100% to the terminal building cost center.2“Other” represents the following indirect cost centers: ambulance service, apron security posts, support arearoads, inter-terminal bus, mobile response, law enforcement officers (LEOs) and baggage handling maintenance.3 O&M expenses for the following facilities are not charged to the airlines: public parking lots, publicparking garage, employee parking facilities, general aviation area, taxicab shelters and other miscellaneousnon-airline facilities.4 A new Use and Lease Agreement became effective on May 1, 2005 maintaining four direct cost centersand eliminating seven indirect cost centers.5Beginning FY2008, data incorporates a change in reporting methodology - excluding OPEB.6 A new Use and Lease Agreement became effective on May 1, 2009.7 Reflects Use and Lease Agreement: the Airline cost centers amounts provided are preliminary settlementsamounts and are subject to change.B-43

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical Operating and Maintenance ExpensesFor the Last Ten Fiscal Years2007 2008 5 2009 2010 6 2011 2012 7$ 25,022,038 $ 26,514,668 $ 28,831,360 $ 29,797,055 $ 28,905,636 $ 28,355,25342,447,274 46,220,645 44,689,158 44,728,434 45,012,638 43,878,4544,012,999 4,260,908 3,794,294 3,925,026 4,445,428 4,280,475$ 71,482,311 $ 76,996,221 $ 77,314,813 $ 78,450,515 $ 78,363,702 $ 76,514,182$ 10,676,825 $ 11,658,000 $ 12,045,000 $ 12,029,357 $ 12,549,488 $ 12,218,15921,326,414 21,204,000 22,973,000 22,717,973 23,316,448 21,486,4811,180,927 1,326,000 1,384,000 1,427,882 1,490,911 1,495,585624,948 694,000 539,000 1,074,791 1,086,145 995,620- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -33,809,114 34,882,000 36,941,000 37,250,003 38,442,992 36,195,84537,673,197 42,114,221 40,373,813 41,200,512 39,920,710 40,318,337$ 71,482,311 $ 76,996,221 $ 77,314,813 $ 78,450,515 $ 78,363,702 $ 76,514,182B-44

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical Revenues (1)For the Last Ten Fiscal Years2003 2004 2005 2006AirfieldLanding fees (MCI & MKC) $ 9,635,966 $ 9,545,944 $ 9,358,585 $ 11,003,143Fuel flowage fees 568,694 682,166 680,383 658,951Total airfield 10,204,660 10,228,110 10,038,968 11,662,094TerminalTerminal building rentsAirline terminal 6,699,753 6,637,060 6,726,506 8,085,546Other terminal 791,127 750,258 733,539 1,029,182ConcessionsFood and beverage 630,950 587,303 1,094,493 1,573,199News and gifts 765,728 862,171 1,398,479 1,639,272Other concessions 498,285 439,099 423,383 542,042Terminal apron area 1,851,504 1,694,001 1,896,698 1,838,118Total terminal revenues 11,237,347 10,969,892 12,273,098 14,707,359Parking revenue 31,654,833 33,089,817 34,450,836 35,606,188Rental car revenue 7,290,691 7,864,913 7,829,509 8,372,860Aviation services area 3,782,221 3,559,507 2,679,955 4,594,393Other property rentals/other revenue 3,216,692 2,299,644 2,396,089 2,440,441Operating grant 3,022,340 936,958 136,058 130,359Customer facility charge revenues 5,792,046 5,886,939 5,976,731 6,147,691Transportation facility charge revenues (2) - - - 1,760,366Interest revenue 3,900,572 4,137,949 3,127,290 6,645,437Total Revenues $ 80,101,402 $ 78,973,729 $ 78,908,534 $ 92,067,188(1)Revenues presented in accordance with the methodology set forth in the GARB bond ordinances.(2) The Department began collecting rental car Transportation Facility Charge (“TFC”) Revenues on November 1, 2005.B-45

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of Historical Revenues (1)For the Last Ten Fiscal Years2007 2008 2009 2010 2011 2012$ 12,379,739 $ 13,144,092 $ 13,001,311 $ 13,804,270 $ 14,017,042 $ 15,986,343637,822 755,257 428,279 229,372 431,204 394,63213,017,561 13,899,348 13,429,590 14,033,642 14,448,246 16,380,9758,798,380 9,919,574 10,594,929 9,355,593 9,202,970 9,309,597616,804 609,352 844,945 559,298 1,061,492 1,869,6381,744,031 2,122,205 1,955,650 1,747,254 1,774,032 1,992,1421,149,030 1,224,245 1,028,853 837,215 913,019 926,962665,117 312,502 267,964 285,896 397,043 515,0381,486,668 1,897,767 1,651,618 1,698,382 1,622,975 1,785,29014,460,030 16,085,645 16,343,958 14,483,637 14,971,531 16,398,66740,032,941 44,007,005 40,303,290 40,059,593 43,366,827 46,167,6828,817,410 10,695,864 10,891,442 9,825,488 9,749,133 10,104,81010,576,261 9,728,175 9,873,639 8,221,341 6,076,945 3,918,6732,961,357 5,045,088 7,124,115 6,377,218 8,195,045 9,201,962168,117 185,220 290,638 315,569 264,630 154,6606,456,360 6,809,736 6,170,584 5,439,585 5,674,925 6,036,0724,296,620 4,540,222 4,117,922 3,737,492 4,011,223 4,748,17810,710,543 10,895,280 6,049,066 2,133,958 2,103,392 2,260,811$ 111,497,200 $ 121,891,583 $ 114,594,245 $ 104,627,524 $ 108,861,897 $ 115,372,490B-46

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of PFC RevenuesFor the Last Ten Fiscal Years2003 2004 2005 2006 2007Total Enplanements [A] 1 4,987,421 4,905,086 5,036,889 5,112,330 5,610,488% of PFC Enplaned Passengers [B]PFC Enplaned Passengers [C = A x B]PFC Exempt Air Carriers [D]PFC Eligible Enplanements [E = C - D]This information was presented in the Report of the Airport Consultant on a projectedbasis to calculate projected PFC Revenues. However, this calculation is not relevant forthe presentation of historical PFC Revenues.PFC Rate [F]PFC Revenues [G = E x F] 2 $ 13,686,560 $ 13,879,589 $ 13,655,542 $ 20,252,999 $ 24,097,7302008 2009 2010 2011 2012Total Enplanements [A] 1 5,905,988 5,058,885 4,939,032 4,945,779 5,198,808% of PFC Enplaned Passengers [B]PFC Enplaned Passengers [C = A x B]PFC Exempt Air Carriers [D]PFC Eligible Enplanements [E = C - D]This information was presented in the Report of the Airport Consultant on a projectedbasis to calculate projected PFC Revenues. However, this calculation is not relevant forthe presentation of historical PFC Revenues.PFC Rate [F]PFC Revenues [G = E x F] 2 $ 23,822,136 $ 20,159,368 $ 20,532,775 $ 20,454,358 $ 20,887,0241 Fiscal Year enplanements from Schedule of Historical Airline Cost Per Enplaned Passenger.2 PFC revenues are obtained from the Department's audited financial statements. July 2005 was the initialallowable increase in the PFC rate from $3.00 to $4.50.B-47

City of Kansas City, Missouri Department of AviationDebt Capacity InformationSchedule of PFC Bond Sufficiency CovenantFor the Last Ten Fiscal YearsSufficiency CovenantFYE03 FYE04 FYE05 FYE06 FYE07PFC Authority 1 $338.9 $338.9 $377.1 $377.1 $425.0Less: PFC Pay-As-You-Go Costs paid to date 2 81.0 79.6 95.1 88.2 115.5PFC Pay-As-You-Go Contractual Commitments 3 0.0 0.0 0.0 0.0 0.0Debt Service paid to date on the Series 2001 Bonds 15.0 25.4 35.8 46.1 56.3Projected Debt Service on any Junior Lien Bonds 0.0 0.0 0.0 0.0 0.0Plus: Funds on deposit on any Junior Lien Bonds 0.0 0.0 0.0 0.0 0.0Subtotal (A) 242.9 234.0 246.3 242.9 253.2Projected Debt Service Requirements $231.9 $221.5 $211.1 $200.8 $190.6Less: Cash Balance of PFC Fund 0.0 0.0 0.0 0.0 0.0Cash Balance of P & I Account 0.9 1.4 1.4 1.4 1.4Debt Service Requirements (B) 231.0 220.1 209.8 199.5 189.2Sufficiency Test Covenant (must be at least 1.05) (A/B) 1.05 1.06 1.17 1.22 1.34Sufficiency CovenantFYE08 FYE09 4 FYE10 FYE11 FYE12PFC Authority 1 $425.0 $378.5 $404.1 $404.1 $404.1Less: PFC Pay-As-You-Go Costs paid to date 2 115.6 122.5 130.7 133.9 149.2PFC Pay-As-You-Go Contractual Commitments 3 0.0 0.0 0.0 0.0 0.0Debt Service paid to date on the Series 2001 Bonds 66.5 76.7 86.9 96.9 106.9Projected Debt Service on any Junior Lien Bonds 0.0 0.0 0.0 0.0 0.0Plus: Funds on deposit on any Junior Lien Bonds 0.0 0.0 0.0 0.0 0.0Subtotal (A) 242.9 179.3 186.5 173.3 148.0Projected Debt Service Requirements $180.4 $170.2 $160.1 $150.0 $139.9Less: Cash Balance of PFC Fund 0.0 0.0 0.0 0.0 0.0Cash Balance of P & I Account 1.3 10.6 10.8 10.8 10.8Debt Service Requirements (B) 179.1 159.6 149.3 139.2 129.1Sufficiency Test Covenant (must be at least 1.05) (A/B) 1.36 1.12 1.25 1.24 1.151234PFC Authority approved by the FAA.Includes PFC Pay-As-You-Go costs related to approved PFC applications.PFC Pay-As-You-Go contractual commitments that have not yet been paid. For purposes of thisanalysis, it is assumed that all contractual commitments are paid as incurred.In FY2009 the debt service requirement decreased by $20 million due to the PFC debt service reserve.B-48

City of Kansas City, Missouri Department of AviationDemographic and Economic InformationSchedule of PopulationKansas City Metropolitan Area and Air Service AreaSquareMiles1980Population1990Population2000Population2011Population (1)Metropolitan Statistical Area (MSA)MissouriBates 848 15,873 15,025 16,653 17,008Caldwell 429 8,660 8,380 8,969 9,315Cass 699 51,029 63,808 82,092 100,052Clay 396 136,488 153,411 184,006 225,161Clinton 419 15,916 16,595 18,979 20,789Jackson 605 629,266 633,232 654,880 676,360LaFayette 629 29,931 31,107 32,960 33,209Platte 420 46,341 57,867 73,781 90,903Ray 570 21,378 21,971 23,354 23,230KansasFranklin 574 22,062 21,994 24,784 25,931Johnson 477 270,269 355,054 451,086 552,991Leavenworth 463 54,809 64,371 68,691 77,176Linn 599 8,234 8,254 9,570 9,612Miami 577 21,618 23,466 28,351 32,715Wyandotte 151 172,335 161,993 157,882 158,224Total MSA 7,856 1,504,209 1,636,528 1,836,038 2,052,676SquareMiles1980Population1990Population2000Population2011Population (1)Air Service Area (ASA)MissouriBuchanan 410 87,888 83,083 85,998 89,666KansasDouglas 465 67,640 81,798 99,962 112,211Total ASA 875 155,528 164,881 185,960 201,877Total Area 8,731 1,659,737 1,801,409 2,021,998 2,254,553Source: www.census.gov(1) U.S. Census Bureau, 2011 population estimateB-49

City of Kansas City, Missouri Department of AviationDemographic and Economic InformationSchedule of Principal Employers(1)Kansas City Metropolitan Area2012 2003PercentagePercentageNumber of of Total Number of of TotalEmployer 1 Employees Rank Employment Employees Rank EmploymentFederal Government 27,600 1 2.79% 18,591 4 1.94%State/County/City Government 2 26,326 2 2.66% 27,054 2 2.82%Public School System 3 26,250 3 2.65% 29,172 1 3.04%HCA Midwest Health System 8,632 4 0.87% 7,326 5 0.76%Sprint Nextel Corp. 7,000 5 0.71% 21,000 3 2.19%Saint Luke's Health System 6,891 6 0.70% 4,123 9 0.43%Cerner Corp. 6,615 7 0.67% 2,626 19 0.27%Children’s Mercy Hospitals and Clinics 5,151 8 0.52% 2,990 14 0.31%DST Systems, Inc. 4 5,000 9 0.50% 6,232 6 0.65%The University of Kansas Hospital 4,721 10 0.48% 2,784 18 0.29%Truman Medical Center 4,258 11 0.43% 2,801 15 0.29%General Motors, Fairfax Assembly Plant 4,100 12 0.41% 3,200 10 0.33%Ford Motor Company, KC Assembly Plant 4,000 13 0.40% 5,808 7 0.61%Hallmark Cards, Inc. 3,700 14 0.37% 5,000 8 0.52%Black & Veatch 3,600 15 0.36% 2,552 20 0.27%UPS 3,500 16 0.35% 3,000 13 0.31%Farmers Insurance 3,200 17 0.32%Home Depot 3,153 18 0.32%Total employment Kansas City MSA 5 990,200 15.52% 958,600 15.05%Sources:1 Top Public-Sector Employers, Kansas City Business Journal, April 6, 2012 andTop 100 Area Private-Sector Employers, Kansas City Business Journal, April 13, 2012.2 The number of local employees for the State/County/City Government is made up of eight and nine employers for 2012 and 2003.3 The number of local employees for the public school systems is composed of eleven public school systems and districts.4 DST Systems Inc. did not participate in the survey in 2012. Employment count is from August per Kansas City Business Journal5 Bureau of Labor Statistics, http://data.bls.gov, Rpt: SMU29281400000000001, as of April 2012 and Annual 2003**The City does not undertake continuously to update this table. The information presented in this tablespeaks only as of the date indicated in the source. Layoffs or developments after this date are not presentedand can render some information in the table to be inaccurate.B-50

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Rates and ChargesFor the Last Ten Fiscal YearsUser Fees Unit Charged FYE03 FYE04 FYE05 FYE06 FYE07Landing fee, signatory (1) per 1,000 lbs. $ 1.07 $ 1.10 $ 1.10 $ 1.35 $ 1.43Terminal aircraft apron (1) per lineal foot 284.11 284.11 258.11 202.33 196.72Terminal building (1) per square foot 27.90 27.90 24.41 24.39 26.67Passenger boarding bridge (1) per bridge/month 1,671.45 1,671.45 1,807.00 2,592.00 1,407.75Passenger facility charge per enplanement 3.00 3.00 3.00 4.50 4.50Customer facility fees per contract day 3.00 3.00 3.00 3.00 3.00Transportation facility charge per transaction day - - - 2.00 2.00Remaining overnight apron fee per plane/night 125.00 125.00 125.00 125.00 129.00FIS Custom facility use fee per passenger 2.50 2.50 2.50 2.50 2.50Employee parking fee per month 24.00 24.00 24.00 24.00 24.00Tenant terminal parking fee per month - 35.00 35.00 35.00 35.00Taxicab/limousine fee per pickup - 1.00 1.00 1.00 1.00Shuttle fee ($30 min/mo) per trip - 0.50 0.50 0.50 0.50Fuel flowage fee per gallon - - 0.07 0.08 0.08User Fees Unit Charged FYE08 FYE09 FYE10 FYE11 FYE12Landing fee, signatory (1) per 1,000 lbs. $ 1.46 $ 1.88 $ 2.03 $ 2.17 $ 2.17Terminal aircraft apron (1) per lineal foot 208.92 218.57 226.11 231.78 225.59Terminal building (1) per square foot 26.31 30.10 31.11 31.86 30.09Passenger boarding bridge (1) per bridge/month 1,361.08 1,619.00 2,723.00 4,202.00 2,861.00Passenger facility charge per enplanement 4.50 4.50 4.50 4.50 4.50Customer facility fees per contract day 3.00 3.00 3.00 3.00 3.00Transportation facility charge per transaction day 2.00 2.00 2.10 2.36 2.36Remaining overnight apron fee per plane/night 133.00 133.33 133.33 145.00 150.00FIS Custom facility use fee per passenger 2.50 2.50 2.50 2.50 2.50Employee parking fee per month 24.00 24.00 24.00 40.00 40.00Tenant terminal parking fee per month 60.00 60.00 60.00 60.00 60.00Taxicab/limousine fee per pickup 1.00 1.00 1.00 3.00 3.00Shuttle fee ($30 min/mo) per trip 0.50 0.50 0.50 1.50 1.50Fuel flowage fee per gallon 0.08 0.08 0.08 0.08 0.08(1) Rates for FYE12 are projected settlement rates.B-51

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Parking RatesFor the Last Ten Fiscal YearsParking Fees Time Period FYE03 FYE04 FYE05 FYE06 FYE07Terminal parking (Lots A, B, C) 0 - 1/2 hour Free Free Free Free Free1/2 - 1 hour $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 2.001 - 2 hours 2.00 2.00 2.00 2.00 4.002 - 3 hours 4.00 4.00 4.00 4.00 6.003 - 4 hours 6.00 6.00 6.00 6.00 8.004 - 5 hours 8.00 8.00 8.00 8.00 10.005 - 6 hours 10.00 10.00 10.00 10.00 12.006 - 7 hours 12.00 12.00 12.00 12.00 14.007 - 8 hours 14.00 14.00 14.00 14.00 16.008 - 9 hours 16.00 16.00 16.00 16.00 18.00daily maximum 18.00 18.00 18.00 18.00 18.00Circle parking (Lot E) 0 - 1/2 hour Free Free Free Free Free1/2 - 1 hour $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 2.001 - 2 hours 2.00 2.00 2.00 2.00 4.002 - 3 hours 4.00 4.00 4.00 4.00 6.003 - 4 hours 6.00 6.00 6.00 6.00 8.004 - 5 hours 8.00 8.00 8.00 8.00 10.00daily maximum 10.00 10.00 10.00 10.00 12.00Economy parking lot 0 - 1/2 hour Free Free Free Free Freedaily maximum $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.50Parking Fees Time Period FYE08 FYE09 FYE10 FYE11 FYE12Terminal parking (Lots A, B, C) 0 - 1/2 hour Free Free $ 1.00 $ 1.00 $ 1.001/2 - 1 hour $ 2.00 $ 2.00 3.00 3.00 3.001 - 2 hours 4.00 4.00 6.00 6.00 6.002 - 3 hours 6.00 6.00 8.00 8.00 9.003 - 4 hours 8.00 8.00 10.00 10.00 12.004 - 5 hours 10.00 10.00 12.00 12.00 15.005 - 6 hours 12.00 12.00 15.00 15.00 18.006 - 7 hours 14.00 14.00 18.00 18.00 22.007 - 8 hours 16.00 16.00 20.00 20.00 22.008 - 9 hours 18.00 18.00 20.00 20.00 22.00daily maximum 18.00 18.00 20.00 20.00 22.00Circle parking (Lot E) 0 - 1/2 hour Free Free $ 1.00 $ 1.00 $ 1.001/2 - 1 hour $ 2.00 $ 2.00 3.00 3.00 3.001 - 2 hours 4.00 4.00 6.00 6.00 6.002 - 3 hours 6.00 6.00 9.00 9.00 9.003 - 4 hours 8.00 8.00 12.00 12.00 12.004 - 5 hours 10.00 10.00 13.00 13.00 15.00daily maximum 12.00 12.00 13.00 13.00 15.00Economy parking lot 0 - 1/2 hour Free Free Free Free Freedaily maximum $ 5.50 $ 5.50 $ 6.00 $ 6.00 $ 6.00B-52

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Facility InformationKansas City International AirportRunways Airport code MCI1L/19R 10,801' x 150' Size 10,725 acres1R/19L 9,500' x 150' Elevation 1,026 feet9/27 9,500' x 150'KCI Terminal Information Terminal A Terminal B Terminal C TotalsBoarding gates 25 19 22 66Passenger boarding bridges 17 16 15 48Food and beverage areas 4 11 7 22News/gift areas 2 6 4 12Business traveler service areas 1 4 2 7KCI Parking Information (number of parking spaces)Terminal A Terminal B Terminal C Circle Lot EEconomyLot AEconomyLot BEconomyLot CPark AirExpressTotal PublicSpaces2,000 2,000 2,250 1,850 3,734 5,917 5,612 2,068 25,431Employee Parking Lot 1,500Charles B. Wheeler Downtown AirportRunways Airport code MKC1/19 6,827' x 150' Size 697 acres3/21 5,050' x 100' Elevation 759 feetDowntown Operations (number of flights)CalendarYearDomesticAir CarrierCommuterAir TaxiGeneralAviation Military Total2002 82 20,166 103,079 1,133 124,4602003 34 19,213 97,434 830 117,5112004 42 19,922 86,630 1,056 107,6502005 16 15,028 85,871 564 101,4792006 26 14,124 68,900 678 83,7282007 101 16,910 79,759 1,154 97,9242008 133 16,218 67,088 1,239 84,6782009 168 17,684 64,325 1,658 83,8352010 96 18,546 62,793 1,458 82,8932011 172 17,897 58,242 1,424 77,735Richards-Gebaur Intermodal Transportation FacilitySize53.48 acresB-53

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Operating Expenditures by DivisionFor the Last Nine Fiscal Years (1)B-54Salaries, Wages and Employee BenefitsFYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE11 FYE12DivisionAdministration $ 967,240 $ 794,016 $ 952,418 $ 999,609 $ 1,033,755 $ 1,303,841 $ 1,162,906 $ 894,050 $ 1,031,918Accounting and Finance 1,163,849 1,495,603 1,269,353 1,325,829 1,300,162 1,434,329 1,336,507 1,281,860 1,329,867Information technology 641,965 454,327 597,325 544,910 706,043 612,271 685,791 622,273 730,170Engineering 801,268 994,181 906,155 843,760 977,928 1,167,812 1,079,833 1,055,511 1,227,472Human resources 270,407 255,668 154,819 212,142 190,624 165,954 176,836 151,717 127,791Marketing 493,259 517,218 546,031 609,661 607,333 681,453 650,229 519,609 537,149Economic development 786,530 728,537 699,568 655,193 796,733 722,836 692,402 771,981 812,895Parking operations - - - - - 197,630 200,632 170,498 69,890CBW Downtown Airport 608,136 684,930 757,625 733,694 826,618 880,304 1,054,423 929,672 942,624Operations 726,888 764,571 923,217 887,990 1,035,752 1,148,787 1,273,759 1,267,595 1,310,266Field maintenance 2,475,102 2,590,070 2,839,374 3,323,323 3,673,682 4,021,930 4,349,150 3,923,717 3,941,796Fleet maintenance 755,607 755,446 865,127 957,625 1,027,575 1,169,680 1,279,117 1,251,838 1,165,757Facilities custodial 3,003,633 3,235,297 3,315,372 3,196,643 3,722,864 4,344,478 4,247,452 3,894,465 3,630,417Facilities structural 1,482,091 1,465,550 1,628,172 1,754,338 1,938,849 2,086,210 2,010,165 1,838,936 1,787,613Bus operations - - - - 3,525,562 3,798,685 3,967,497 4,089,278 4,013,210Parking and bus 2,403,273 2,826,189 3,051,577 3,328,585 - - - - -Environmental management - 94,504 314,885 293,131 310,210 326,681 345,430 336,368 331,566Safety - - 149,070 205,744 193,643 165,972 157,430 117,739 118,415Art & Aesthetics - - - - - - - - -Youth program - - - - - 6,000 - - -Maintenance projects - - - 1,358 (38) 918 (3) - -$ 21,120,771 $ 22,168,647 $ 24,007,384 $ 25,022,038 $ 27,455,554 $ 30,198,871 $ 31,199,724 $ 29,265,231 $ 29,543,646(1) Information not available prior to FY2004.(Continued)

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Operating Expenditures by DivisionFor the Last Nine Fiscal Years (1)B-55Contractual ServicesFYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE11 FYE12DivisionAdministration $ 1,016,445 $ 200,862 $ 638,037 $ 1,451,787 $ 650,486 $ 277,153 $ 224,820 $ 761,042 $ (365,020)Accounting and finance 417,182 964,740 544,386 476,418 472,340 484,552 452,735 575,817 578,659Information technology 1,915,058 2,387,423 1,046,069 891,264 857,235 1,060,018 1,808,517 1,310,230 1,221,389Engineering 469,917 241,313 250,614 366,439 448,112 421,182 306,884 293,527 285,527Human resources 250,164 226,312 184,831 177,244 155,301 139,756 96,725 108,703 98,326Marketing 744,926 919,874 1,092,109 1,076,772 1,276,669 993,400 1,051,223 951,184 974,321Economic development 1,680,421 1,878,810 4,550,436 7,100,311 7,663,731 7,474,735 5,786,771 5,444,885 5,626,933Parking operations - - - - 1,974,675 5,056,689 5,402,192 5,415,640 6,083,27911500 parking - - - - - - 1,061,839 1,279,262 1,935,938CBW Downtown Airport 731,003 678,772 710,650 685,702 810,769 819,190 929,340 1,228,762 1,810,852Richards-Gebaur 253,031 193,141 89,663 353,751 9,594 12,692 2,323 5,079 3,527Ambassador building - - - - 567,975 716,396 965,882 923,949 974,650Operations 2,562,922 2,610,554 2,592,112 2,678,137 3,366,964 261,239 319,034 291,935 3,712,446Airport police 1,975,026 1,872,778 1,951,223 2,073,535 1,940,110 5,410,019 5,196,696 5,900,288 2,285,288Field maintenance 541,790 494,655 479,974 491,223 564,386 605,950 552,446 612,031 511,087Fleet maintenance 270,264 381,247 663,510 576,137 734,319 701,139 705,093 644,065 733,195Facilities custodial 820,862 893,258 809,399 811,930 824,939 861,785 898,476 919,028 836,372Facilities structural 5,340,259 6,087,855 9,989,406 15,012,588 15,459,055 16,276,529 16,220,361 15,147,773 14,293,908Bus operations - - - - 3,913,584 775,493 847,714 872,247 824,868Parking and bus 3,495,477 4,016,427 5,339,132 5,187,726 - - - -Environmental management 106,072 462,035 418,686 547,200 827,507 648,074 565,205 406,262 366,318Safety - - 22,497 118,452 128,796 115,797 127,349 118,127 115,420Art and aesthetics - 5,156 4,781 - 49,324 - - - -Youth program - - - - - 23,187 - - -Maintenance projects 2,883,223 1,165,112 1,693,545 2,370,658 3,524,774 1,554,183 1,206,809 1,802,802 971,170$ 25,474,042 $ 25,680,324 $ 33,071,060 $ 42,447,274 $ 46,220,645 $ 44,689,158 $ 44,728,434 $ 45,012,639 $ 43,878,454(1) Information not available prior to FY2004.(Continued)

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Operating Expenditures by DivisionFor the Last Nine Fiscal Years (1)B-56CommoditiesFYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE11 FYE12DivisionAdministration $ 22,682 $ 28,562 $ 18,496 $ 34,084 $ 42,305 $ 26,485 $ 24,218 $ 27,704 $ 33,047Accounting and finance 16,820 11,375 71,895 51,607 41,410 38,560 22,333 27,673 252,605Information technology 75,732 129,909 212,921 177,723 201,128 205,583 148,701 187,671 150,894Engineering 18,336 11,706 12,723 18,529 14,612 12,975 13,361 9,077 14,406Human resources 8,251 2,405 4,719 6,400 5,436 6,755 4,028 3,482 5,298Marketing 10,755 11,538 12,579 7,390 12,560 14,248 14,897 11,290 12,036Economic development 106,927 24,923 149,831 158,386 606,511 218,200 134,454 179,407 156,056Parking operations - - - - 21,712 115,762 90,584 115,074 195,75311500 parking - - - - - - 140,360 130,865 82,547CBW Downtown Airport 116,643 169,746 185,612 165,956 174,968 174,410 295,478 656,987 654,322Ambassador building - - - - 19,078 5,344 54,799 45,820 34,735Operations 16,615 33,360 30,287 13,541 45,644 20,888 28,503 25,542 37,902Airport police 97,021 50,633 100,732 74,770 383,597 336,632 215,783 289,830 303,984Field maintenance 957,170 1,034,746 917,819 1,501,777 1,391,052 1,233,966 922,452 1,003,343 768,664Fleet maintenance 567,356 681,273 791,071 909,259 477,219 616,897 1,020,938 1,038,475 892,485Facilities custodial 432,885 288,271 363,383 427,572 483,844 401,333 440,698 391,523 385,570Facilities structural 158,239 120,792 87,368 440,599 321,378 348,324 335,915 282,063 277,224Bus operations - - - - 13,366 12,110 11,071 13,429 18,811Parking and bus 11,459 13,921 9,458 15,763 - - - - -Environmental management - 8,839 5,849 4,549 2,824 3,079 1,928 3,704 2,650Safety - - 2,455 5,059 2,264 2,743 4,525 2,468 1,488Youth program - - - - - - - - -Maintenance projects - - - 35 - - - - -(1) Information not available prior to FY2004.$ 2,616,891 $ 2,621,999 $ 2,977,198 $ 4,012,999 $ 4,260,908 $ 3,794,294 $ 3,925,026 $ 4,445,428 $ 4,280,475(Continued)

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Operating Expenditures by DivisionFor the Last Nine Fiscal Years (1)B-57Total Operating ExpendituresFYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE11 FYE12DivisionAdministration $ 2,006,367 $ 1,023,440 $ 1,608,951 $ 2,485,480 $ 1,726,546 $ 1,607,479 $ 1,411,944 $ 1,682,797 $ 699,944Accounting and finance 1,597,851 2,471,718 1,885,634 1,853,854 1,813,912 1,957,441 1,811,575 1,885,350 2,161,131Information technology 2,632,755 2,971,659 1,856,315 1,613,897 1,764,406 1,877,872 2,643,009 2,120,175 2,102,453Engineering 1,289,521 1,247,200 1,169,492 1,228,728 1,440,652 1,601,969 1,400,079 1,358,115 1,527,404Human resources 528,822 484,385 344,369 395,786 351,361 312,465 277,589 263,902 231,414Marketing 1,248,940 1,448,630 1,650,719 1,693,823 1,896,562 1,689,101 1,716,349 1,482,083 1,523,506Economic development 2,573,878 2,632,270 5,399,835 7,913,890 9,066,975 8,415,771 6,613,626 6,396,273 6,595,883Parking operations - - - - 1,996,387 5,370,081 5,693,408 5,701,212 6,348,92311500 parking - - - - - - 1,202,199 1,410,127 2,018,485CBW Downtown Airport 1,455,782 1,533,448 1,653,887 1,585,352 1,812,355 1,873,904 2,279,241 2,815,421 3,407,797Richards-Gebaur 253,031 193,141 89,663 353,751 9,594 12,692 2,323 5,079 3,527Ambassador building - - - - 587,053 721,740 1,020,681 969,768 1,009,385Operations 3,306,425 3,408,485 3,545,616 3,579,668 4,448,360 1,430,914 1,621,296 1,585,072 5,060,615Airport police 6,613,570 6,435,951 7,089,251 7,296,808 7,911,966 11,709,751 11,942,646 12,338,240 9,024,103Field maintenance 3,974,062 4,119,471 4,237,167 5,316,323 5,629,120 5,861,846 5,824,047 5,539,090 5,221,548Fleet maintenance 1,593,227 1,817,966 2,319,708 2,443,021 2,239,113 2,487,716 3,005,147 2,934,377 2,791,437Facilities custodial 4,257,380 4,416,826 4,488,154 4,436,145 5,031,647 5,607,596 5,586,626 5,205,017 4,852,359Facilities structural 6,980,589 7,674,197 11,704,946 17,207,525 17,719,282 18,711,063 18,566,440 17,268,772 16,358,745Bus operations - - - - 7,452,512 4,586,288 4,826,282 4,974,955 4,856,890Parking and bus 5,910,209 6,856,537 8,400,167 8,532,074 - - - - -Environmental management 106,072 565,378 739,420 844,880 1,140,541 977,834 912,564 746,333 700,534Safety - - 174,022 329,255 324,703 284,512 289,304 238,335 235,323Art and aesthetics - 5,156 4,781 - 49,324 - - - -Youth program - - - - - 29,187 - - -Maintenance projects 2,883,223 1,165,112 1,693,545 2,372,051 3,524,736 1,555,101 1,206,809 1,802,802 971,170(1) Information not available prior to FY2004.$ 49,211,704 $ 50,470,970 $ 60,055,642 $ 71,482,311 $ 77,937,107 $ 78,682,323 $ 79,853,184 $ 78,723,298 $ 77,702,576

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Full-Time and Equivalent Employees by DivisionFor the Last Nine Fiscal Years (1)Division FYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE11 FYE12Administration 10 11 8 9 9 8 7 6 6Accounting and finance 27 27 27 26 26 23 20 19 20Information technology 11 2 - - - - - - 6Engineering 20 19 16 14 14 12 12 12 12Human resources 5 3 4 4 4 3 3 2 2Marketing 8 8 8 8 8 7 6 6 6Economic development 14 11 10 10 10 8 8 9 9Parking operations - - - - - 1 2 1 1CBW Downtown Airport 13 15 17 16 17 18 15 13 15Operations 11 12 16 17 16 16 16 14 16Airport police 129 144 128 126 126 124 106 108 103Field maintenance 74 72 74 71 71 71 60 59 58Fleet maintenance 16 16 16 17 17 16 16 17 17Facilities custodial 92 94 94 94 94 94 79 74 70Facilities structural 36 34 34 35 34 32 27 26 28Bus operations - - - - 102 83 77 78 71Parking and bus 66 67 104 101 - - - - -Environmental management - 2 3 3 3 3 3 3 3Safety - 3 3 3 3 2 2 1 1532 540 562 554 554 521 459 448 444Source: Kansas City Aviation Department records.(1)Information not available prior to FY2004.B-58

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Assets CapitalizedFor the Year Ended April 30, 2012Buildings and Building ImprovementsCNG Facility Expansion $ 389Field Maintenance 154 Tokyo Addition 4,613,408KCI-Avi Fac Development 6,380Overhaul Base Remainder 306Tee Hangar Complex Rehab - CBW (48,069)Tenant Improvements 1,114,717Total buildings and building improvements 5,687,132InfrastructureAirfield Fiber Pathway 724Airfield Pavement Repairs 6,848,414AOA Fence Replacement at KCI 195,915Bonn Circle, Bogata Rehab 17,951Chill Water System Rehabilitation 7,364,709Commerce Center Development 1,143,839Cookingham Dr & Int Cir Rehabilitation 2,365,787DT Rehabilitate Runway 3/21 3,305Economy Parking Lot Rehabilitation 1,207,003Emergency Road Repairs @ RAC 7Extend Taxiway B & D (1,387,753)Garage A & B Tunnel Replacements 5,068Glycol Basin Repair 1,145Int Sq, Brasilia, Bern St Rehabilitation 810,971KCI Upgrade Glycol Collection Syst 2,729Overhaul Base Entry Road Rehabilitation 727,216Overhaul Base Network Extension 32,208Reconstruction of Runway 19R, Phase 1 12,149,644Rehab Bern & Paris St at KCI 430,741Rehab Lou Holland, Richards Rd. 1,281,956Rehab Taxiways D & J 4,628,379Rehab Taxiways M & L (10,101,630)Rehabilitate Airfield Lights 27,252Rehabilitate Airfield Roadways 4,538,006Runway 1/19 Safety Area Phase 2 387,801Sinkhole Repairs at DT Airport 452,593Taxiway M & M1 Rehab 58,608Taxiway Pavement Rehabilitation 4,042,988Taxiways B, G, & M Rehabilitation 117,728Terminal B Road Rehab 89,369Total infrastructure 37,442,672Machinery and EquipmentCNN Terminal equipment 21,665Computer equipment for Interactive Drivers Training Program 18,113Computer equipment for Mufids & audio paging system 19,470Fuel pumps and card readers for CNG station 199,172Other operating and safety equipment 612,072Police Vehicles 35,365Snow removal vehicle accessories 11,499Tractors/mowers 260,566Vehicles for operations 129,652Antique airplane 101,500Total machinery and equipment 1,409,074Total assets capitalized $ 44,538,878B-59

City of Kansas City, Missouri Department of AviationOperating InformationSchedule of Construction in ProgressFor the Year Ended April 30, 2012Projects Project Description FYE11 Additions Capitalized Expensed FYE1262000000 Aviation Dept. Capital Budget $ 1,382,767 $ 2,283,854 $ - $ - $ 3,666,62162010122 KCI-Extend Taxiways B & D - (1,387,753) 1,387,753 - -62020174 KCI-Upgrade Glycol Collection - 2,729 (2,729) - -62030256 KCI-Avi Fac Development 6,380 - (6,380) - -62040281 Rehabilitate Airfield Lights - 27,252 (27,252) - -62050294 KCI-Overhaul Base Plant Rehab 177 571,446 - - 571,62362050298 KCI-Rehabilitate Taxiways D, J - 4,628,379 (4,628,379) - -62050299 KCI-Rehabilitate Taxiways M, L - (10,101,630) 10,101,630 - -62050300 DT-Rehabilitate Runway 3-21 - 3,305 (3,305) - -62060304 Overhaul Base Remainder 306 - (306) - -62060307 Rehabilitate Airport Roadways 3,393,233 1,144,773 (4,538,006) - -62070313 Tee Hangar Complex Rehab - CBW (27,959) (48,069) 48,069 27,959 -62070317 Snow Removal Equip Bldg Const - 694,532 (694,532) - -62070318 Field Maint 154 Tokyo Addition 369,437 4,107,369 (4,476,805) - -62070319 Commerce Center Development 525,941 617,898 (1,143,839) - -62070320 CNG Facility Expansion 389 - (389) - -62080327 Chill Water System Rehab 649,449 6,715,260 (7,364,709) - -62080330 Airfield Pavement Repairs - 6,847,490 (6,847,490) - -62080331 Relief Well System Rehab. 114,979 202,511 - - 317,49162080332 Taxiway M & M1 Rehab - 58,608 (58,608) - -62080337 Emergency Road Repairs @ RAC 7 - (7) - -62090344 Airfield Pavement Rehab. Ph-2 - 924 (924) - -62100346 Terminal B Rd Rehab 89,369 - (89,369) - -62100347 Bonn cir, Bogota st Rehab 17,951 - (17,951) - -62100350 Terminal CCTV Camera Install 777,350 2,603,355 - - 3,380,70662100351 Garage A&B Tunnel Replacements 5,068 - (5,068) - -62100352 Runway 1/19 Safety Area Ph. 2 - 387,801 (387,801) - -62100354 Cookingham Dr & Int Cir Rehab - 2,365,787 (2,365,787) - -62100355 Economy Parking Lot Rehab 440,223 766,780 (1,207,003) - -62100356 Int Sq, Brasilia, Bern St. Rehab - 810,971 (810,971) - -62100358 Overhaul Base Entry Rd Rehab - 727,216 (727,216) - -62100360 Rehab Lou Holland/Richards Rd - 1,281,956 (1,281,956) - -62110362 New Terminal Advance Planning - 347,192 - - 347,19262110365 Taxiway Pavement Rehab 51,223 3,991,765 (4,042,988) ` -62110366 Rehab Bern & Paris St @ KCI 94,764 335,977 (430,741) - -62110369 Airfield Fiber Pathway 724 - (724) - -62110370 Glycol Basin Repair 1,145 - (1,145) - -62110373 AOA Fence Replacement @ KCI - 34,661 (34,661) - -62110374 Overhaul Base Network Extensio - 32,208 (32,208) - -62110378 Airfield Pavement Repairs P-3 193,800 122,275 (316,075) - -62110380 RAC Facility Improvements - 231,557 - - 231,55762110381 West Side Electr Rehab (MKC) - 89,241 - - 89,24162110382 Field Maint Temporary Facility 9,325 127,278 (136,603) - -62110383 Rehab Economy Lot Bridges - 140,029 - - 140,02962110388 Reconstruction RW 19R Phase 1 - 11,833,569 (11,833,569) - -62120392 AOA Fence Replacement, Ph.II - 161,253 (161,253) - -62120395 Overhaul Base Lighting Upgrade - 7,781 - - 7,78162120396 Sinkhole Repairs - 452,593 (452,593) - -62120400 Disaster Recovery System Ph. I - 544,259 - - 544,25962960C07 KCI-Taxiway B G & M Rehab - 117,728 (117,728) - -62990D49 KCI-Storage Bldg Improvements - (694,532) 694,532 - -62TENIMP Tenant Improvements 12,764 1,135,032 (1,114,717) (33,079) -Grand total $ 8,108,811 $44,322,612 $(43,129,804) $ (5,121) $ 9,296,499B-60

A pair of doves watch the sun set at Kansas City International Airport.

COMPLIANCE SECTIONTHIS SECTION CONTAINS THE FOLLOWING SCHEDULES:INDEPENDENT ACCOUNTANTS’ REPORTOPINION LETTER FROM INDEPENDENT ACCOUNTANT REGARDING THE PASSENGER FACILITY CHARGE(PFC) PROGRAM REPORT CONTAINED IN THIS COMPREHENSIVE ANNUAL FINANCIAL REPORTSCHEDULE OF PFC FUNDS COLLECTED AND EXPENDEDSCHEDULE SHOWING PASSENGER FACILITY CHARGE (PFC) FUNDS COLLECTED AND EXPENDEDFOR THE CURRENT FISCAL YEARNOTES TO SCHEDULE OF PFC FUNDS COLLECTED AND EXPENDEDNARRATIVE EXPLANATION REGARDING ITEMS IN THE PASSENGER FACILITY CHARGE (PFC) REPORT

Independent Accountants’ Report on Compliance withRequirements Applicable to the Passenger Facility Charge (PFC)Program and on Internal Control Over Compliance and on theSchedule of PFC Funds Collected and ExpendedThe Honorable Mayor and Members of the City CouncilCity of Kansas City, MissouriComplianceWe have audited the compliance of the Kansas City International Airport (the Airport), a proprietary fundof the City of Kansas City, Missouri (the City), with the compliance requirements described in thePassenger Facility Charge Audit Guide for Public Agencies (the Guide), issued by the Federal AviationAdministration, for its passenger facility charge program for the year ended April 30, 2012. Compliancewith the requirements of laws and regulations applicable to its passenger facility charge program is theresponsibility of the Airport’s management. Our responsibility is to express an opinion on the Airport’scompliance based on our audit.We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and the Guide. Those standards andthe Guide require that we plan and perform the audit to obtain reasonable assurance about whethernoncompliance with the compliance requirements referred to above that could have a direct and materialeffect on the passenger facility charge program occurred. An audit includes examining, on a test basis,evidence about the Airport’s compliance with those requirements and performing such other proceduresas we considered necessary in the circumstances. We believe that our audit provides a reasonable basisfor our opinion. Our audit does not provide a legal determination on the Airport’s compliance with thoserequirements.In our opinion, the Airport complied, in all material respects, with the requirements referred to above thatare applicable to its passenger facility charge program for the year ended April 30, 2012.Internal Control Over ComplianceThe management of the Airport is responsible for establishing and maintaining effective internal controlover compliance with requirements of laws, regulations, contracts and grants applicable to the passengerfacility charge program. In planning and performing our audit, we considered the Airport’s internalcontrol over compliance with the requirements that could have a direct and material effect on thepassenger facility charge program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance inaccordance with the Guide, but not for the purpose of expressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of theAirport’s internal control over compliance.C-1

The Honorable Mayor and Members of the City CouncilCity of Kansas City, MissouriPage 2A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of thepassenger facility charge program on a timely basis. A material weakness in internal control overcompliance is a deficiency, or combination of deficiencies, in internal control over compliance such thatthere is a reasonable possibility that material noncompliance with a type of compliance requirement of thepassenger facility charge program will not be prevented, or detected and corrected, on a timely basis.Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be deficiencies, significant deficiencies or material weaknesses. We did notidentify any deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above.Schedule of PFC Funds Collected and ExpendedWe have audited the financial statements of the City of Kansas City, Missouri Airports Fund as of and forthe years ended April 30, 2012 and 2011, and have issued our report thereon dated October 25, 2012,which contained an unqualified opinion on those financial statements. Our audits were performed for thepurpose of forming an opinion on the financial statements as a whole. The accompanying schedule ofPFC funds collected and expended is presented for purposes of additional analysis and is not a requiredpart of the financial statements. Such information is the responsibility of management and was derivedfrom and relates directly to the underlying accounting and other records used to prepare the financialstatements. The information has been subjected to the auditing procedures applied in the audits of thefinancial statements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare the financialstatements or to the financial statements themselves, and other additional procedures in accordance withauditing standards generally accepted in the United States of America. In our opinion, the information isfairly stated in all material respects in relation to the financial statements as a whole.As described in Note 2 to the schedule of PFC funds collected and expended, the accompanying scheduleis prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accountingother than accounting principles generally accepted in the United States of America.This report is intended solely for the information and use of the Mayor, City Council members,management of the City and the Federal Aviation Administration, and is not intended to be and shouldnot be used by anyone other than these specified parties.Kansas City, MissouriOctober 25, 2012C-2

City of Kansas City, Missouri Department of AviationPassenger Facility Charge (PFC) ProgramSchedule of PFC Funds Collected and ExpendedFor the Year Ended April 30, 2012ProjectPFCAuthorized FundsPFC Project Description Approved For Amount ExpendedProject 1.1 Paving of Runway 1R/19L and Taxiway Collection and use $ 8,409,781 $ 8,409,781Project 1.2 Terminal Improvements- Design Phase Collection and use 16,197,329 8,268,506Project 1.3 Taxiway D Rehabilitation Collection and use 427,000 426,763Project 1.4 Aircraft Rescue and Firefighting Vehicles Collection and use 265,000 264,944Project 1.5 Overlay Runway 1L/19R, Taxiway A, A1-A9 Collection and use 6,722,000 6,722,000Project 1.6 Terminal Apron Rehabilitation, Phase II - VII Collection and use 14,556,288 14,556,288Project 1.7 Land Acquisition Collection and use 10,766,850 10,766,850Project 1.8 Terminal Apron Lights Collection and use 630,529 630,529Project 1.9 Overlay Runway 9/27 and Taxiway C Collection and use 4,549,975 4,549,975Project 1.10 Expanded General Aviation Apron Collection and use - -Project 1.11 Construct Federal Inspection Services Facility Collection and use 4,099,000 4,099,000Project 1.12 Taxiway B Rehabilitation Collection and use 5,009,511 5,009,511Project 1.13 Terminal Improvements - Construction Phase Collection and use 205,852,308 96,060,958Project 2.1 Airfield Storm Drainage - MKC Collection and use - -Project 2.2 Construction Hold Apron West -Term. B Collection and use 3,944,000 3,944,000Project 2.3 Automated Access Control System-New Collection and use 2,337,336 2,322,855Project 2.4 Reconstruct Taxiway D {Between C-6 & F} Collection and use - -Project 2.5 PFC Development and Administration Collection and use 1,094,103 474,389Project 3.1 Terminal Equipment Collection and use 61,602,166 36,842,865Project 3.2 Airfield Lighting Generator Collection and use 512,599 512,599Project 3.3 Relocate Airfield Generator-MKC Collection and use 576,509 576,509Project 3.4 Overlay Runway 1/19-MKC Collection and use - -Project 4.1 Reconstruct Runway 1/19-MKC Collection and use 2,809,515 2,809,515Project 5.1 Two New ARFF Vehicles Collection and use 345,831 345,831Project 5.2 Taxiway B & D Extension Collection and use 2,315,000 2,006,646Project 5.3 Taxiway M & L Rehabilitation Collection and use 2,125,000 2,125,000Project 5.4 Airport Master Plan & Part 150 Update Collection and use 3,500,000 1,229,571Project 5.5 New ARFF Facility Construction Collection and use 1,918,433 1,918,433Project 5.6 Inline Baggage Screening Collection and use 5,000,000 5,000,000Project 5.7 Taxiway D Rehabilitation Collection and use 1,375,000 1,375,000Project 5.8 Airfield Lighting Rehabilitation Collection and use 2,647,435 2,647,435Project 5.9 Perimeter Fencing Replacement - MKC Collection and use 338,000 338,000Project 5.10 Terminal Improvements - Holdrooms Collection and use 5,860,645 5,860,645Project 5.11 Upgrade Glycol Collection System Collection and use 2,750,000 2,750,000Project 5.12 Airfield Snow Removal Equipment Building Collection only - -Project 5.15 Fuel Farm Relocation - MKC Collection only - -Project 6.01 Airfield Sand and Deicing Facility Collection only 3,900,000 3,900,000Project 6.02 Terminal chilled water line and cooling tower Collection and use 3,335,000 3,335,000Project 6.03 Snow removal equipment/ARFF vehicle facility Collection and use 3,328,000 3,328,000Project 6.04 Airfield pavement rehabilitation Collection and use 3,275,000 3,275,000Project 6.05 New snow removal equipment Collection and use 770,500 770,500Project 6.07 Runway 1/19 Safety Area Extensions - MKC Collection and use 600,000 600,000Project 6.08 Cargo apron rehabilitation Collection and use 370,560 367,451Project 6.09 Airfield Snow Removal Equipment Building Collection only 10,000,000 7,739,051Total Authority $ 404,116,203 $ 256,159,400CumulativePFC Revenue Collected $ 286,354,289Interest Earned 19,293,921Total - PFC Revenue $ 305,648,210See Notes to Schedule of PFC Funds Collected and Expended C-3

City of Kansas City, Missouri Department of AviationPassenger Facility Charge (PFC) ProgramNotes to Schedule of PFC Funds Collected and ExpendedFor the Year Ended April 30, 2012Note 1:GeneralThe Aviation Safety and Capacity Expansion Act of 1990 (Public Law 101-508, Title II,Subtitle B) authorized the local imposition of passenger facility charges (PFCs) and use of PFCrevenues on Federal Aviation Administration (FAA) approved projects. On August 8, 2006, theFAA approved a $4.50 PFC collection at Kansas City International Airport (MCI). The totalapproved amount of net PFC revenue plus interest that MCI is allowed to collect is $404,116,203by July 1, 2014.Note 2:Schedule of Passenger Facility Charge Revenues and ExpendituresThe accompanying schedule of Passenger Facility Charge Revenues and Expenditures presents therevenues received from PFC and expenditures incurred on approved projects on the cash basis ofaccounting, wherein revenues are recorded when received and expenses are recorded when paid.Revenue received and expenditures made on approved projects in the accompanying scheduleagree to the PFC quarterly status reports submitted by MCI to the FAA.Note 3:PFC BondsOn August 1, 2001, the City of Kansas City, Missouri Aviation Fund issued $140,000,000 in PFCRevenue Bonds. These bonds were issued for the purpose of financing the design and constructioncosts of terminal improvements at the Kansas City International Airport and are backed by thePFCs collected on ticketed passengers that pass through the Airport. The bonds mature annuallythrough 2026.Note 4:PFC Funds CollectedPFC funds collected during the year ended April 30, 2012 were as follows:PFC Collections $ 21,581,635Interest Earned on PFC Collections 986,614Total PFC Revenue in FYE12 $ 22,568,249C-4

City of Kansas City, Missouri Department of AviationPassenger Facility Charge (PFC) ProgramNotes to Schedule of PFC Funds Collected and ExpendedFor the Year Ended April 30, 2012Note 5:PFC Funds ExpendedPFC funds expended during the year ending April 30, 2012 were as follows:Funds Expended by QuarterSecond Quarter–2011 $ 11,058,870Third Quarter - 2011 3,298,494Fourth Quarter–2011 2,815,058First Quarter–2012 8,168,194Less April 2011 -Plus April 2012 -Total PFC Funds Expended in FYE12 $ 25,340,616C-5

COMPREHENSIVE ANNUAL FINANCIAL REPORTKANSAS CITY AVIATION DEPARTMENT601 BRASILIA AVENUEKANSAS CITY, MISSOURI 64153(816) 243-3124www.flykci.com