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Home My WebLink About09-16-2014 Regular MeetingMinutes of the Fairhope Airport Authority September 16, 2014 The Fairhope Airport Authority met Tuesday, September 16, 2014 at 4:30PM in the Delchamps Suite, Room 1, in the Civic Center at 161 N Section St. Present: Charles Zunk, Chairman; other members present: Pam Caudill, Joe McEnerney, Charlie Bassett, Rod Platt, and Jack Burrell. Howard Hadley was absent. Present also was David Bagwell, Attorney, Bill Ross of Continental Motors and Dick Lacey, Attorney representing Hy -Grade Valve. Cynthia A Boothe took the minutes. The minutes of the August 19, 2014 meeting were considered and approved on a motion by Pam Caudill, second by Joe McEnerney and unanimously carried. Addition to the Agenda: Charles Zunk asked for a motion to add to the agenda a discussion and consideration of the sale of 9.4+/- acres of property on the west side to Hy -Grade Valve. A motion was made by Charlie Bassett, second by Pam Caudill and unanimously carried. Discussion and Consideration of Sale of Property: Charles Zunk described which lots (14 & 15) that Hy -Grade Valve was interested in purchasing so that they could expand their business to the east of their existing building. He also stated the terms and details of the sale and that the purchase price will be $260,000.00 with the net proceeds being applied to the PNC loan principal. After the group discussed the sale of the property and with a motion on the table to approve the sale by Rod Platt and a second by Joe McEnerney it was unanimously carried. Letter from Howard Hadley: Although not on the agenda Charles Zunk read a letter from Howard Hadley who stated because of a business move to Sterling, Virginia he will be unable to fulfill his duties for the Airport Authority and tendered his resignation effective September 16, 2014. He also stated how much he enjoyed his time serving on the board and felt much has been accomplished and will continue to be accomplished by the Airport Authority members. Charles Zunk stated that a new member will be appointed by the mayor and approved by the City Council to fill out Howard's term which runs through March of 2019. Update on "The Academy": Charlie Bassett stated that progress is still being made on the building and hopefully everything will be completed in time for the January term. In the meantime there are two trailers on the property, one for welding classes and the other for industrial maintenance classes. The aviation classes are being held in Robertsdale. Update on FBO lease: Charles Zunk stated that he hoped to be able to present something on the FBO lease at the next meeting about whether to pursue a lease extension or ask for a RFP. Update on FY2014 AIP Grant construction: Chuck Zunk stated that Volkert is finalizing plans on the drainage issues and as the Airport Authority has secured the grant money needed that the contractor should be able to begin the project within sixty days. Update of Stream Mitigation land Sale: Rod Platt stated that everything should be in order for the Planning and Zoning Commission to approve the subdivision of the property at the next meeting set for October 6, 2014 so that the sale of the property can be completed. Treasurer's Report: Joe McEnerney stated that $332,934.09 was spent on Academy expenses and that he and Jill Cabiness are working on having all the financial information in order for the year end reports. There being no further business, the meeting was adjourned. CITY OF FAIRHOPE AIRPORT AUTHORITY GOVERNMENTWIDE FINANCIAL STATEMENTS MEASUREMENT FOCUS - ECONOMIC RESOURCES ACCRUAL BASIS OF ACCOUNTING MONTH ENDING SEPTEMBER 30, 2014 PRELIMINARY - UNADJUSTED AND UNAUDITED BALANCE SHEET ENDING BALANCE ASSETS CHECKING ACCOUNT _ FNB CERTIFICATE OF DEPOSIT - CITIZEN'S CERTIFICATE OF DEPOSIT 103,466.55 FNB CONSTRUCTION ACCOUNT 103,167.23 PNC OPERATING ACCOUNT 332,996.40 PNC CONSTRUCTION ACCOUNT 47,544.61 BBVA-ACADEMY MONEY MARKET 639,012.01 BBVA-ACADEMY CONSTR ACCOUNT 101,602.74 FAA PROJECT 170.00 LAND AND CONSTRUCTION IN PROGRESS 11,061,874.46 CAPITAL IMPROVEMENTS 14,728,120.72 ACCUMULATED DEPRECIATION (3,121,495.70) DEFERRED EXPENSE - BOND ISSUE 23,231.00 TOTAL ASSETS 24,019,690.02 LIABILITIES 2010 PNC LOAN-DEFEASE 2007 ALLIED IRISH LETTER OF CREDIT 8,440,000.00 DEFERRED INFLOWS OF RESOURCES SERVICE CONCESSION ARRANGEMENT REVENUE APPLICABLE TO FUTURE YEARS 2,700,000.00 NET POSITION RETAINED EARNINGS 2,160,670.43 INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 12,254,440.43 NET EARNINGS (1,535,420.84) TOTAL LIABILITIES AND CAPITALIZATION 24,019,690.02 INCOME STATEMENT CURRENT MONTH YEAR TO DATE REVENUES FUEL SALES 630.96 9,253.36 CITY OF FAIRHOPE APPROPRIATION 36,916.66 443,000.00 T HANGER RENT 6,263.30 58,732.00 PUBLIC SAFETY RENT 573.30 6,879.60 FBO CONTINENTAL/OFFICE RENT 7,350.00 88,200.00 FAIRHOPE AIRPORT ACADEMY LOC - - INTEREST INCOME 57.55 9,223.77 FAA GRANT - 6,215.00 TOTAL REVENUES 51,791.77 621,503.73 EXPENSES INSURANCE - 30,938.00 PROPERTY TAX - - TRAVEL/DUES/MEETINGS - 3,288.44 BANK FEES 92.50 925.81 LEGAL 2,380.00 24,583.00 PROFESSIONAL SERVICES - 102,151.58 OFFICE AND GENERAL 113.54 3,924.18 SUPPLIES - 1,427.90 MAINTENANCE 4,300.00 71,869.59 EQUIPMENT MAINTENANCE - - FAIRHOPE AIRPORT ACADEMY EXPENSE 113,844.59 1,776,529.45 MISCELLANEOUS - 664.48 INTEREST EXPENSE 10,590.79 129,523.21 ELECTRICITY 1,059.22 11,098.93 TOTAL EXPENSES 132,380.64 2,156,924.57 NET EARNINGS (80,588.87) (1,535,420.84) Jill Cabaniss, Finance Director 11 /6/2014 CITY OF FAIRHOPE AIRPORT AUTHORITY GOVERNMENTAL FUNDS FINANCIAL STATEMENTS MEASUREMENT FOCUS- CURRENT FINANCIAL RESOURCES MODIFIED ACCRUAL BASIS OF ACCOUNTING MONTH ENDING SEPTEMBER 30, 2014 BALANCE SHEET ENDING BALANCE ASSETS CHECKING ACCOUNT FNB CERTIFICATE OF DEPOSIT _ CITIZEN'S CERTIFICATE OF DEPOSIT 103,466.55 FNB CONSTRUCTION ACCOUNT 103,167.23 PNC OPERATING ACCOUNT 332,996.40 PNC CONSTRUCTION ACCOUNT 47,544.61 BBVA-ACADEMY MONEY MARKET 639,012.01 BBVA-ACADEMY CONSTR ACCOUNT 101,602.74 FAA PROJECT 170.00 TOTAL ASSETS 1,327,959.54 LIABILITIES DEFERRED RENT 2,700,000.00 FUND BALANCE AND NET EARNINGS FUND BALANCE 705,896.91 NET EARNINGS (2,077,937.37) TOTAL LIABILITIES AND NET EARNINGS 1,327,959.54 INCOME STATEMENT CURRENT MONTH YEAR TO DATE REVENUES FUEL SALES 630.96 9,253.36 CITY OF FAIRHOPE APPROPRIATION 36,916.66 443,000.00 T HANGER RENT 6,263.30 58,732.00 PUBLIC SAFETY RENT 573.30 6,879.60 FBO CONTINENTAL/OFFICE RENT 7,350.00 88,200.00 FAIRHOPE AIRPORT ACADEMY LOC - - INTEREST INCOME 57.55 9,223.77 FAA GRANT - 6,215.00 TOTAL REVENUES 51,791.77 621,503.73 EXPENSES INSURANCE - 30,938.00 PROPERTY TAX - - TRAVEUDUES/MEETINGS - 3,288.44 BANK FEES 92.50 925.81 LEGAL 2,380.00 24,583.00 PROFESSIONAL SERVICES - 102,151.58 OFFICE AND GENERAL 113.54 3,924.18 SUPPLIES - 1,427.90 MAINTENANCE 4,300.00 71,869.59 EQUIPMENT MAINTENANCE - - FAIRHOPE AIRPORT ACADEMY EXPENSE 113,844.59 1,776,529.45 MISCELLANEOUS - 664.48 INTEREST EXPENSE BOND ISSUE EXPENSE - - ELECTRICITY 1,059.22 11,098.93 CAPITAL PURCHASES -LAND CAPITAL IMPROVEMENTS 6,874.76 287,516.53 DEBT SERVICE -INTEREST 10,590.79 129,523.21 DEBT SERVICE -PRINCIPAL PAYMENT - 255,000.00 TOTAL EXPENSES 139,255.40 2,699,441.10 NET EARNINGS (87,463.63) (2,077,937.37) ADJUSTMENT OF NET EARNINGS TO NET CASH FLOW Net Earnings for the month ended Sept 30, 2014, before adjustment $ (87,463.63) (2,077,937.37) Adjustment for expenditures related to Airport Academy 113,844.59 1,776,529.45 Adjustment for expenditures related to the use of the Airport's line of credit - - Net cash flow for the month ended Sept 30, 2014 $ 26,380.96 $ (301,407.92) Jill Cabaniss, Finance Director 11 /6/2014