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HomeMy WebLinkAbout04-21-2020 Airport Board FC MinutesM I N U T E S Barkley Regional Airport Authority FINANCE COMMITTEE Meeting - Tuesday, 04/21/20, 2:00p Via Zoom Meeting ID 854 7282 2339 Finance Committee (FC) Chairman Durbin welcomed everyone and recognized that a quorum was present. Committee Members present were Chairman George Bray, Marshall Davis, John Durbin, Chairman and Ashley Johnson. Staff present was Dennis Rouleau, Executive Director(ED) and Carol Creason, Accountant. Also present were representatives from WPSD TV, Paducah Sun newspaper and visitor Allan Kleet. Airport Financial Update At the request of FC Chairman Durbin, former BRAA Treasurer Allan Kleet reviewed 5-year Select Financial Data for the members. The data showed consistent operating expense over the period with a CAGR of 2.2%, and small increases in Revenue. Operating losses has been routinely funded with County and City contributions/subsidies. The large investment in Property and Equipment over the years have been significantly funded by FAA grants (roughly 90-95%) with some local share. Continual decreases in working capital and the deficit expected for 06/30/20 are attributed to the airport’s funding of local grant matching and the purchase of non-grant eligible property and equipment. The Committee reviewed current cash balances and cash flow. The increase in the CFSB line of credit from $100,000 to $300,000 was approved by the bank. Discussion on the estimated additional operating deficit for the final quarter of FY20 and the tentative estimate of the 6/30/21 budget which indicated a potential shortfall of roughly double the normal shortfall for an operating year. Update on existing Airport Improvement Program grants. We have three older smaller grants in process but one new one from the Kentucky Department of Aviation (KDA) could provide up to $300,000 in benefits toward the design/civil work for the terminal project. Federal DOT/FAA Aid to Airports for Coronavirus Disaster The CARES Act has provided some initial aid to airports and BRAA’s share is currently $1,086,000 but a grant application has to be written for it. ED Rouleau believes the funding can be claimed retro to January 20th for any type of current operating expenses of the airport. So, discussion on if the funds must be used by the end of the calendar year or over four years to be determined. Discussion on if the grant monies can be used on normally non-grant eligible items such as a new mower or vehicle to be determined. New Terminal Discussion of current flight activities – still two flights per day but with a flag stop at Cape Girardeau. Discussion of current city/county commitments in light of the potential $1,086,000 in CARES Act benefits. Committee would like for the city/county commitment to remain the same for the next fiscal year and not be reduced by the benefits of the grant monies. Depending on the actual expenditures that BRAA can claim, the grant money from the CARES Act could over time create some cash reserve that would be very helpful in light of potential shortfalls in funding for the new terminal. Discussion where we are with the new terminal. The potential of $600,000 on FAA FY2020 funding exists if we can move forward quickly on certain phases of the terminal planning. Bids for the road and apron (possibly $12 million of the contract) may need to be received prior to July 1st to be eligible for the $12,000,000, 100% FAA Cares ACT grant. Discussion on “right sizing” the terminal project to reduce the potential of being $5.6 million short of overall funding on the project. Talks with our advisors on the project will continue. The terminal project was initially allocated $5 million from state KDA funds but some questions (given the Covid-19 impact to State funding resources) as to the timing and which years the funds can be used. Financial Priorities FC Chairman Durbin recapped mostly prior discussion stating first priority is to complete grant applications to start the process of receiving all the CARES Act funding we can get as quickly as we can applying first to recover prior operating expenses and then use for current operating expenses. Determine if vehicle and lawn equipment type purchases are eligible plus possible a new IT system. Request the same city/county funding as current fiscal year so that reserves can build from the $1,086,000 potential grant monies. Whistleblower Location Site Activity Mr. Kleet gave the committee an overview of this topic. Oversight is required by the BRAA Finance Committee to review a “whistle blower” special website set up just for individuals/employees to anonymously complain about anything as to the BRAA. Mr. Kleet provided a one-page print-out of website activity (email listing by name and topics) since last November and he noted most were spam and only one that was not a true whistleblowing topic but needed attention. The password for oversight will be passed on to the new FC Chairman Durbin. Other Business Discussed the need to retain outside auditors for the end of the upcoming fiscal year. The Kemper Group has done the audit for the past five year and BRAA has been operating under a year to year audit engagement. FC Chairman Durbin to follow up on this.