Annual Budget Fiscal Year Ending

April 30, 2014

EMAS Installation Budgeted for Summer 2013

Representative installation at Boston’s Logan Airport

An Intergovernmental Cooperative of The City of Prospect Heights, Illinois and

The Village of Wheeling, Illinois

March 14, 2013

(this page left intentionally blank)

Annual Operating & Capital Budget

May 1, 2013 - April 30, 2014

City of Prospect Heights

_________________________________

Nicholas J. Helmer - Mayor

Aldermen

Luis Mendez John Styler

Scott Williamson Patrick Ludvigsen

Bree Higgins

Anne Marrin - City Administrator

Village of Wheeling

_________________________________

Judy Abruscato - President

Trustees

Dean S. Argiris Kenneth Brady Robert J. Heer

Bill Hein Ray Lang

David Vogel

Jon Sfondilis - Village Manager

Chicago Executive Airport Board of Directors

___________________________________________________ vacant Chairman Dean Argiris Wheeling David Kolssak Wheeling Larry Widmer Wheeling Darlene Ahlstedt Prospect Heights William Kearns Prospect Heights Elizabeth “Betty” Cloud Prospect Heights ________________________________________________ Dennis G. Rouleau Airport Manager

TABLE OF CONTENTS

LETTER OF TRANSMITTAL Page Budget Document ............................................................................................................ 1 Strategic Goals and Strategies ......................................................................................... 2 Priorities and Issues ......................................................................................................... 2 Executive Review ............................................................................................................ 3 Long Term Issues and Plans ............................................................................................ 6 Long Term Financial Plans……………………………………………………….. ........ 7 Long Term Financial Policies……………………………………………………….. .... 8 Staffing, Compensation & Benefits ................................................................................. 8 Staffing Summary ............................................................................................................ 9 Organization Chart……. .................................................................................................. 10 Organization .................................................................................................................… 11 Detailed Budget Analysis ................................................................................................ 11 Four-Year Budget Overview ............................................................................................ 12 Revenues .......................................................................................................................... 13 Operating Budget ............................................................................................................. 14 Non-Operating Budget ..................................................................................................... 15 Capital Budget ................................................................................................................. 15 Reserve Funds .................................................................................................................. 17 Operating and Reserve Funds Available.......................................................................... 18 Debt Obligations .............................................................................................................. 19 Legal Debt Margin ........................................................................................................... 19 Budget Adoption .............................................................................................................. 20 Budget Calendar............................................................................................................... 20 Budget Amendments ........................................................................................................ 21 Budget Reporting………………………………………………………………………. 21 Budget Presentation Award ............................................................................................ 21 Acknowledgment ............................................................................................................. 21 REVENUE BUDGET SECTION ................................................................................. 22 Budget and Four-Year Comparison ................................................................................. 23 Discussion ........................................................................................................................ 24 Category Line Item Details ............................................................................................. 27

OPERATING BUDGET SECTION ............................................................................ 30 Department of Finance & Administrative Services ......................................................... 31 Description ........................................................................................................... 32 Goals .................................................................................................................... 32 Key Performance Measures/Service Indicators ................................................... 33 Personnel Schedule .............................................................................................. 33 Budget and Four-Year Comparison ..................................................................... 34 Category Line Item Details .................................................................................. 35 Department of Operations & Maintenance Services ....................................................... 43 Description ........................................................................................................... 44 Goals .................................................................................................................... 44 Key Performance Measures/Service Indicators ................................................... 46 Personnel Schedule .............................................................................................. 46 Budget and Four-Year Comparison ..................................................................... 47 Category Line Item Details .................................................................................. 48 NON-OPERATING BUDGET SECTION .................................................................. 54 Interest Income................................................................................................................. 55 Other Income and Expenses ............................................................................................. 55 Debt Service ..................................................................................................................... 56 CAPITAL BUDGET SECTION ................................................................................... 57 Impact on Operating Budget…………………………………………………………… 58 Capital Budget Summary ................................................................................................. 61 Capital Projects-Internally Funded Detail ....................................................................... 62 Capital “A” Projects Detail .............................................................................................. 64 Capital “B” Projects Detail .............................................................................................. 68 Capital “C” Projects Detail .............................................................................................. 71 Reserve Funds………………………………………………….. .................................... 72 Sewer Reserve Fund………………………………………………….. .......................... 73 Vehicle and Equipment Reserve Fund…………………………………………………. 75 SUPPLEMENTAL INFORMATION .......................................................................... 76 Chicago Executive Board Resolution 13-010 .................................................................. 77 Entity Profiles .................................................................................................................. 79 Airport History………………………………………………………………….............. 80 Glossary……………………………………………………………..………….............. 82

1

March 14, 2013 The Citizens of the City of Prospect Heights, its Mayor and City Council The Citizens of the Village of Wheeling, its President and Village Board The Chairman and Members of the Chicago Executive Airport Board The Intergovernmental Agreement, dated July 1, 2005, between the City of Prospect Heights and the Village of Wheeling (hereinafter referred to as “the Municipalities”) acknowledges their responsibility “to operate, manage, maintain and provide for the local portion of any future development of the Airport out of Airport revenues.” The Chicago Executive Airport Board of Directors (hereinafter referred to as “the Board”) is charged with the fiduciary responsibility of reviewing and recommending an annual budget to the Municipalities for subsequent approval.

Budget Document The Airport has one enterprise fund, the Joint Airport Fund. The budget basis for this fund is the accrual basis of accounting whereby revenues are recorded in the period in which they are earned and expenditures are recorded in the period in which they are incurred. This basis is the same as our financial statement reporting except for: depreciation and amortization are not included in the budget, and capital outlays and the receipt of long-term debt proceeds are not included in operations within the financial statements. While the Sewer Reserve and Capital Equipment Reserve sub-funds are presented in the budget as separate funds, they are combined into the Joint Airport Fund for financial reporting purposes, and the reserve balance information is notated in the footnotes. The budget is prepared considering historic costs as well as anticipated costs for the coming fiscal year. The budget is developed using a line-item form for each category that details and describes each income and expense item. During the course of the fiscal year, any expense category overages are covered by either contingency amounts or budget surplus amounts in other categories. The Airport Board of Directors and the two municipalities would need to approve any budget adjustment necessary to cover a department or capital budget section that exceeds the approved budget. The budget document is divided into six components, Budget Overview, Revenue Budget, Operating Budget, Non-Operating Budget, Capital Budget, and Supplemental Information. The Operating Budget is divided into six sub parts: Finance and Administration Expenses, Operations and Maintenance Expenses, Interest Income, Other Expense, and Debt Service. This division was done so that the Airport can more accurately determine the cost of services in the future.

2

Strategic Goals and Strategies The Airport’s mission statement is “to provide a safe, modern, environmentally sensitive aviation facility to serve the needs of airport users and the community; to enhance the economic health of the area and to be a productive part of the National Airport System.” Safety is the first priority. The Airport projects with the highest safety rating are usually funded first. Runway Safety Action Team (RSAT), winter operations, and disaster planning meetings are held annually, with staff, airport tenants, FAA Control Tower personnel, and the local emergency response agencies. The Airport strives to serve the needs of airport users. Its largest asset is its real estate holdings, and the goal is to maximize the return on this real estate. The Airport is self-sufficient; it does not receive any property tax dollars or funds from the owning municipalities. One new hangar was constructed with occupancy in November 2012 and another is under construction and will open in September 2013. An additional major project, a new FBO (Fixed Based Operator), plans on starting construction on a new hangar in May 2013. Plus, a memorandum of understanding has been signed for the redevelopment of a vacant parcel. Once the legal agreement is signed, it needs to be approved by both owning municipalities and the FAA. The various developments create new employment opportunities in the area. Holding back development is that the Airport relies on capital infrastructure funds that are channeled through the State of Illinois. Obtaining project funding is normally a multi-year process and is never guaranteed. A consultant has been hired to develop other sources of revenue to try and limit the Airport’s reliance on State funding for projects. In addition, the Airport’s planning, operation, and development require continued cooperation between the two municipal owners.

Priorities and Issues

• Maintain and improve existing levels of Airport services. All service areas have been either maintained at the same level or improved in the new budget. A continued effort to improve the quality of airport services and operations has been accomplished through the establishment of Primary Guiding Documents that include General Provisions, Minimum Standards, Rules and Regulations, and Lease Rates and Charges Policies. This will assure a high standard of quality to airport users. Additionally, our website continues to provide improved methods of communications and information dissemination. We use a bi-monthly newsletter, social media, targeted emails, user meetings, and facsimiles to disseminate information on current happenings at the airport.

• Maintain the policy of increasing revenues by the percent of change in the Consumer

Price Index (CPI). The change in the Consumer Price Index - Urban for the greater Chicago area for the year-ending December 31, 2012 was 1.68% Normally, to allow the Airport to remain a self-supporting entity, revenues are annually increased to match the change in the CPI.

3

• Improve the Airport’s infrastructure. Most of this year’s infrastructure projects for new

and continuing airfield improvements are planned to be funded at a participation rate of 90% federal, 5% state, and 5% local (Airport) share. Due to the uncertainties in funding of many of the grant projects at the state and federal levels, we have divided them into three groups to assure internal funding is adequate for the most likely to be funded projects. Our practice is to include amounts in the budget for the “A” list projects that could be funded this coming fiscal year, while just listing the “B” projects, as it is unlikely that these items will receive funding, and including “C” list projects, for which the Airport has already spent the funds and is seeking reimbursement. This year, the “A” projects represent almost $11 million of planned projects at an estimated cost to the Airport of $4,693,089. After an expected revenue offset of $3,983,750, the net cost would be $709,339.

• Maintaining adequate replacement funds for anticipated future purchases. An

unallocated portion of retained earnings is set aside as an operating reserve in an amount equal to three months of operating expenses, as stated in the Airport’s business plan. The Sewer Reserve sub-fund was created to set aside sanitary sewer and stormwater one-time connection fees and annual maintenance fees for future maintenance of these systems, and the Capital Equipment Replacement sub-fund was established to fund future major equipment purchases and building construction, improvements, and repairs.

• Maintain a compensation and benefit package sufficient for retaining a qualified and

highly motivated work force. The budget includes a 1.68% cost of living salary increase for all airport employees except for the Airport Manager. Also included are provisions to grant up to a 3 percent merit increase for appropriate personnel.

Executive Review

Operating income is operating revenues less operating expenses. It does not include the purchase of capital items or the expense of depreciation and amortization. Operating income is budgeted to increase in FY14 by $327,933, due to a one-time anticipated receipt of $350,000. Without this one-time item, operating income would have decreased by $22,067. The net surplus of $392,132, after expenses, debt service, and transfers, however, will be insufficient to fund all necessary capital expenditures, thus requiring reserve funds to be used. Revenues: FY14 total budgeted revenues are $4,056,225, which is a $490,257 (13.75%) increase over FY13. Without the one-time receipt mentioned previously, the increase would have been $140,257, or 3.93%. The increase is partially due to a full year’s rent from the newly constructed Atlantic Aviation Hangar 42, and the addition of eight months of expected payments from the Tin Goose Garage hangar that is under construction with an estimated occupancy date of September 1st. The CPI increase of 1.68% was instituted for almost all fees. Expenses: The operating budget is comprised of two departments, Finance & Administration (F&A) and Operations & Maintenance (O & M). Total operating expenses for the combined departments are budgeted to increase by a net of $162,323, or 5.9%, compared to FY13, from $2,759,367 in FY13 to $2,921,690 in FY14.

4

Interest Income: The budget shows a decrease in interest income from $13,304 to $9,450, a decrease of $5,654, reflecting our decreasing cash balance and the poor rate of return on investments as a result of the sluggish economy. Debt Service: We expect an interest expense decrease of $15,516, from $210,221 to $194,705, , mainly due to the decreased interest costs on the declining loan/note balances as the principal is paid down each month. No new debt is planned. Reserves: New in the FY14 budget is that sewer revenues will go directly into the Sewer Reserve sub-fund, instead of being received in the Joint Airport Fund and then being transferred into the reserve sub-fund. Additionally, the budget contains a $250,000 transfer into the Capital Equipment Replacement sub-fund (CERF) for future vehicle purchases and other major expenses. Capital “A” Projects: The total cost of all the projects is estimated at $10,813,379 with the Airport’s share expected to be $4,693,089 with offsetting revenue of $3,983,750, resulting in a net cost of $709,339. The FAA’s recent Reauthorization Act doubled the Airport’s local share from 2.5% to 5% of the project cost. Unrestricted Net Assets Available: The Airport Business Plan requires that the Airport maintain an unrestricted net asset balance equal to 3 months (25%) of the current year’s budgeted operating expenses, which would be $730,423 ($2,921,690 x 25%). The estimated unrestricted ending balance of $974,186 from the budget summary table below is sufficient to cover this three month working capital requirement. The FY14 operating and capital budget is summarized below: Revenue Budget $ 4,056,225 Other Income 9,450 Total Revenues 4,065,675

Operating Expense Budget (2,921,690) Capital Expense Budget (1,236,265)

Other Expense

(2,900) Debt Service (498,953) Transfers (250,000) Total Budget $ (4,909,808)

From Reserve Funds 844,133 Net Cash Flow -

Unrestricted Net Assets: Unallocated Portion at May 1, 2013 (estimated) 1,818,319

Unallocated Portion at April 30, 2014 $ 974,186

5

Unrestricted Net Assets (Reserves) Available:

Sewer

Operating CERF Reserves Total

Balances @ 4/30/12 (from audit)

2,341,511 0

121,972

2,463,483

FY13 Projected Results:

Revenues 3,654,883

6,691 3,661,574

Operating Expenses (2,546,975)

(2,546,975)

Other Income & Expense 18,619 125 690 19,434

Debt Service (509,461)

(509,461)

Transfer to reserves (250,000) 250,000

0

Grant revenue 217,927

217,927

Capital Improvements (196,720)

(15,000) (211,720)

Capital Outlay (247,597)

(247,597)

Capital Construction 0

0

Grant Service "A" Projects (663,867)

(663,867)

Capital Other 0

0

Projected results for FY13 (523,192) 250,125 (7,619) (280,686)

Projected Running Balances @ 4/30/13

1,818,319

250,125

114,353

2,182,797

FY14 Budget:

Revenue Budget 4,056,225

267,877 4,324,102

Operating Expenses

(2,921,690)

(2,921,690)

Other Income & Expense

6,550

1,000 500 8,050

Debt Service (498,953)

(498,953)

Transfer to CERF (250,000) 250,000

0

Capital Improve (Facilities/Paving) (275,926)

(25,000) (300,926)

Capital Outlay (Vehicles/Equip)

(251,000)

(251,000)

Capital Construction 0

0

Grant revenue 4,132,250

4,132,250

Grant Service "A" Projects

(4,693,089)

(4,693,089)

Capital Other

(148,500)

(148,500)

Projected results for FY14

(844,133)

251,000

243,377

(349,756)

Est Ending Balances @ 4/30/14 974,186

501,125

357,730

1,833,041

Less 3 month operating reserve* (730,423)

Surplus after reserve requirement 243,764

* FY14 budgeted operating expenses times 25% as required by the Airport's business plan.

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The revenues of the Airport continue to support and exceed all operating expenses. Remaining funds are used for capital expenditures necessary for the Airport’s safety and development. The Chicago Executive Airport creates its annual budget based on its long-term issues and plans which are summarized below.

Long Term Issues and Plans Safety: Paramount to the operation of the Airport is safety and every dollar available will be expended to enhance this already safety-conscious Airport. Following are the safety enhancement budgeted expenses: • Construction of Engineered Materials Arresting System (EMAS) to improve the runway

safety area for Runway 16/34. • Acquisition of commercial property outside the airport but within the runway protection

zone. • Wildlife control provided from a contractor to discourage geese and other wildlife from

interfering with aircraft operations. • Additional and improved aircraft guidance signage and taxiway lighting. • Vegetation growth inhibitor adjacent to runway areas to minimize mowing operations

adjacent to runways. • Apron, taxiway, and runway pavement remarking for safe aircraft ground movement. • Continued enhancement of airport security measures to protect both airport users and the

surrounding communities. Staffing: The number of budgeted staff positions remained unchanged at 14.59 FTEs for FY14. Self-Supporting: The Intergovernmental Agreement organizing the Airport was created with the understanding that the Airport was to be a self-supporting entity, not reliant on the tax-paying public. To date, this policy has never been breached. The Airport has been able to maintain an adequate cash flow to meet expenditures, mostly due to the policy of an annual increase in revenues by the CPI to match the inherently inflationary Airport expenses. However, partially due to the change in the required local matching funds from 2.5% to 5%, it is becoming increasingly difficult for Airport management to have sufficient funds on-hand for future capital intensive projects. Debt: No new debt is planned for FY14. Reserve/Replacement Funds: Setting aside funds for future capital purchases is important to the future of the Airport, both for planning and cash flow purposes. The estimated $2.5 million cost to replace of the Airport’s six large pieces of snow removal equipment cannot be funded from one or two years operating surpluses. New in FY13 was a budgeted $250,000 annual transfer to establish the Capital Equipment Replacement Sub-Fund (CERF). This fund will be used to provide for the future purchases of vehicles, equipment, and facilities. A Sewer Reserve sub-fund was established in March 2011, with funding coming from annual sewer and

7

stormwater maintenance and one-time connection fees. The funds will be used for future sewer and stormwater system maintenance, repair, and improvement. Infrastructure Repair & Replacement: At the time of the Airport’s purchase 26 years ago, its condition was in a state of disrepair. The Airport has recognized that adequate funds were not available to immediately recondition the entire Airport. Considering this fact, an amount is budgeted annually for the incremental reconditioning and replacement of Airport surfaces. This year projects will again be initiated for repair and replacement. Capital Improvement Plan: The Airport, in conjunction with the Illinois Department of Transportation-Division of Aeronautics (IDOT), has created a five year Transportation Improvement Plan (TIP) and updates this plan on an annual basis. The Plan is the basis for each year’s Capital Budget. The existence of such a plan not only provides a vision of the future Airport but, more importantly, allows Airport staff to construct a plan to achieve that vision. Each year this plan is updated, approved by our Board and presented to IDOT. Our plan, along with other state public airport plans, becomes the basis for the State of Illinois annual funding request to the Federal Aviation Administration (FAA). By having this plan, staff can anticipate future capital budget expenses for many years to come.

Long-Term Financial Plans Airport management is aware that operating cash reserve balances are decreasing and are taking steps to address this issue. A consulting firm has been hired to do a bottom line enhancement project by developing additional revenues and cost reductions or sharing. Additionally, management realizes the importance of setting aside sufficient reserves for the future. A Sewer Reserve sub-fund was created in FY12 for the future maintenance/repair/replacement of the sewer and stormwater systems and is funded directly by annual sewer and stormwater maintenance fees and one-time connection fees. A Capital Equipment Reserve sub-fund was created in FY13 to set aside money for the future purchase of vehicles, major equipment, building construction, and/or building improvements. A vehicle replacement schedule was developed, and an equipment replacement schedule will be prepared shortly. These schedules will be updated annually as part of the budget process. This sub-fund is funded by an annual transfer from the operating fund. The Airport Board has entered into a memorandum of understanding for the redevelopment of a vacant parcel. Once the legal agreement is signed by the affected parties, the project will need the approval of both owning municipalities and the FAA. The Airport also has additional areas that are ready to be developed in the East Quadrant. We are actively pursuing all leads. Also available are some smaller vacant parcels from a prior roadway development project that we are considering either developing or selling off. Lastly, we continue to increase rates annually by the change in the Consumer Price Index to keep up with inflation..

8

Long-Term Financial Policies

The Airport’s governing body has approved a business plan. The plan contains long-term financial goals and methods to achieve their implementation. Our annual budget attempts to reflect those policies and goals. Below are applicable financial policies extracted from our current business plan:

• Adjust fixed revenues by 100% of an appropriate price index annually. o Incorporate an appropriate price index adjustment into all leases annually. o Program revenue adjustments every year into the budget based upon the previous

year change in the appropriate price indexes. • Limit Administration and Operating Expenses to 90% of Operating Revenues. • Select revenue producing projects yielding the highest net present value.

o Review all proposals and negotiate terms to yield the highest net present value. o Develop all appropriate usable land to become revenue producing.

• Maintain an unrestricted net asset balance of three months worth of operating expenses and the total local share of current year “A” list projects.

Staffing, Compensation & Benefits The number of staff positions will remain unchanged from FY13 at 14.59 FTEs (Full Time Equivalents). Personnel compensation has been budgeted using a CPI increase of 1.68%. Provisions have also been included to provide for up to a three percent merit increase for those employees who have not reach the top of their pay grade and whose performance justifies such action. Employee Benefits consist of health, life and disability insurance, retirement plan, and the Airport’s share of FICA and Medicare taxes. Health insurance has been budgeted to include an expected 3% increase. Airport staff will be comprised of one Airport Manager, one Assistant Manager, one Chief Financial Officer, one Executive Secretary, one Accountant, one Administrative Assistant, one Management Intern, one Operations Coordinator, one Lead Maintenance Worker, five Maintenance Operators, and four Seasonal Maintenance Operators. All positions are full time with the exception of the seasonal maintenance operators and management intern. The Airport Manager reports to the Boards of Directors of the municipalities. The following page contains an Organizational Chart reflecting the above structure.

9

STAFFING SUMMARY

Change

FY12

FY13

FY14

From FY13

Position (Head-Count)

Budget

Budget

Budget

to FY14

Airport Employees

Airport Manager (1)

1.00

1.00

1.00

0.00

Assistant Manager (1)

1.00

1.00

1.00

0.00

Chief Financial Officer (1) *

0.80

1.00

1.00

0.00

Finance Supervisor (1)

0.00

0.00

0.00

0.00

Executive Secretary (1)

1.00

1.00

1.00

0.00

Administrative Assistants (2) **

2.00

1.00

1.00

0.00

Accountant (1) **

1.00

1.00

0.00

Maintenance Lead (1)

1.00

1.00

1.00

0.00

Maintenance Operators (5)

5.00

5.00

5.00

0.00

Seasonal Maintenance (4)

0.92

0.92

0.92

0.00

Management Intern (1)

0.67

0.67

0.67

0.00

Operations Coordinator (1)

1.00

1.00

1.00

0.00

Total Employees

14.39

14.59

14.59

0.00

* In FY13, change in position from 30 hours to 37.5 hours weekly.

** In FY13, title change to more accurately reflect the duties of the position

Seasonal: 12 weeks @ 37.5 hours per week = 450 hours x 4 employees = 1,800

FTE = 1,800 hours / 1,950 FTE = .92

Intern: 52 weeks @ 25 hours per week = 1,300 hours

FTE = 1,300 hours / 1,950 FTE = .67

10

Chicago Executive Airport Organizational Chart

Operations Coordinator

Lead Maintenance

Worker

Maintenance

Staff (5)

Seasonal Staff (4)

City of Prospect Heights

Mayor and City Council

Executive Secretary

Chief Financial Officer

Airport

Manager

Village of Wheeling

President and Trustees

Chicago Executive

Airport Board of Directors

Assistant Airport

Manager

Administrative

Assistant

Management

Intern

Accountant

11

Organization The City of Prospect Heights and the Village of Wheeling executed an Intergovernmental Agreement on February 26, 1985, creating the Chicago Executive Airport. On July 1, 2005, the Intergovernmental Agreement was amended changing the governing body to a Board of Directors and granting more decision-making powers to this new Board, among other changes. The Airport is recognized under Illinois law as an Intergovernmental Cooperative to allow the joint establishment and operation of the Chicago Executive Airport. Although operated as a separate entity, the Airport is jointly owned by both communities, each with an undivided 50 percent interest. The Airport operates as an enterprise fund and is referred to in the Intergovernmental Agreement as the Joint Airport Fund. The Airport’s Board of Directors consists of seven appointees, three from each municipality with the Chairman being jointly appointed by the both municipalities. The Board of Directors elects one Vice Chairman, Treasurer, and Secretary who preside over the Board of Directors as Officers.

Detailed Budget Analysis The following 10 pages contain expanded explanations of the various budget items. Following in Figure 1 is a graphical comparison of the FY13 and FY14 budgets. The next page has a four year overview of budget and actual numbers for FY10-FY13.

12

Four-Year Overview of the Total Budget

Below is a four-year overview of the Airport’s operating and capital budgets for FY13 and FY14, and actual results for FY11 and FY12. Each year demonstrates positive operating results and capital project commitments that

should fall within the capacity of the Airport’s reserve funds.

FY11

FY12

FY13

FY14

Budget

OPERATING BUDGET: Actual

Actual

Budget

Budget

Change Revenues 3,200,654

3,460,348

3,565,969

4,056,225

490,256

Expenses:

Administration Department

(1,466,444)

(1,643,423)

(1,569,080)

(1,675,540)

(106,460)

Operations and Maint Dept

(1,017,436)

(979,074)

(1,190,287)

(1,246,150)

(55,863)

Net Operating Expenses

(2,483,880)

(2,622,497)

(2,759,367)

(2,921,690)

(162,323)

Operating Income:

716,774

837,851

806,602

1,134,535

327,933

Other:

Other Income

21,646

16,896

13,304

9,450

(3,854)

Other Expense

(12,226)

(9,883)

(3,700)

(2,900)

800

Debt Service

(394,497)

(519,189)

(512,152)

(498,953)

13,199

Total Other

(385,077)

(512,176)

(502,548)

(492,403)

10,145

Revenues less Net Expense

331,697

325,675

304,054

642,132

338,078

Transfers to Resrv-Sewer

-

(48,869)

-

-

-

Transfers to Resrv-CERF

-

-

(250,000)

(250,000)

-

Net

331,697

276,806

54,054

392,132

338,078

CAPITAL BUDGET:

Capital Improvement

306,700

322,619

203,000

275,926

72,926

Capital Outlay

61,449

108,812

272,000

251,000

(21,000)

Capital Construction

2,708,266

-

-

-

-

Grant Service

244,414

364,500

1,026,950

4,693,089

3,666,139

Capital Other

984,426

-

-

148,500

148,500

4,305,255

795,931

1,501,950

5,368,515

3,866,565

Less: Grants

(1,578,426)

(168,373)

-

(4,132,250)

(4,132,250)

Less: Capital Financing

(2,300,000)

-

-

-

-

Net Capital Budget

426,829

627,558

1,501,950

1,236,265

(265,685)

Funding (from)/to Reserve Funds

(95,132)

(350,752)

(1,447,897)

(844,133)

603,764

Net

-

-

-

-

-

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Revenues Revenues are budgeted to increase $490,257 over what was budgeted the previous year. The increases are primarily from a one-time receipt, long-term leases, and T-hangar rentals. A CPI increase of 1.68% was applied to most revenues. The Airport uses the December figures from the Bureau of Labor Statistics Table (CPI-U) Chicago-Gary-Kenosha, IL-IN-WI, all items 1982-84=100, CUURA207SA0, for its calculations. Long-term lease revenues comprise 54% of the total revenues generated on the Airport and, like all Airport revenues, receives an annual CPI increase, depending on the language in the lease. Some of the revenue increase is generated from receiving a full year’s revenue from the newly constructed Atlantic Aviation Hangar 42, and a partial year’s revenue from the soon-to-be constructed Hangar 18. The budget assumes that this hangar will be occupied in September 2013, with annual lease payments of approximately $45,000. Fuel flowage fees comprise 15% of budgeted revenues. Fuel flowage is a per gallon fee calculated on the number of gallons of aviation fuel purchased by the Airport FBOs. Using the calendar year 2012 actual volume, fuel flowage revenues are expected to decrease slightly this year due from $626,000 to $615,800; from 4.6 million gallons to an estimated 4.5 million gallons. The economy has decreased the number of flights flown, plus newer aircraft are more fuel efficient, reducing overall fuel needs. Additionally, some airport tenants purchase fuel at nearby airports that do not have the tax burden imposed by Cook County. We do not expect this to be a growing revenue in future years until the economy increases significantly. Fuel flowage is quite unpredictable and is budgeted conservatively. Tiedown and T-hangar fees comprise about 10% of budgeted revenues. All of the 20 southwest and the 48 newer northeast T-hangars were rented as of April 1, 2013. Our budgeted revenues are conservative and assume that one unit in the SW Ts will be vacant for three months and one unit in the NE Ts will be vacant for 12 months. We expect little, if any, increase in the number of tie down tenants, as demand is stagnant. New in FY14 is a One-time Revenue of $350,000 for a payment under a pending agreement. A memorandum of understanding has been signed by the participating parties; however, the final agreement needs to be signed and then approved by both owning communities and the FAA. We believe that this transaction will be concluded successfully, and therefore, have included it in the budget. Another pending revenue from this transaction is an annual Access Fee of $15,000, which is directly offset against the pending purchase of a property that is included in Capital Outlay-Other on page 63. Lastly, additional items relating to this pending agreement are listed in the Sewer Reserve Fund on page 73. If the transaction is not successfully concluded in FY14, after using operating reserves of $240,000, the budget will be short by $110,000. Any unplanned/extra revenues and expected expense savings will be used to offset the shortfall first, and any remaining shortfall will be covered by deferring vehicle purchases.

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Operating Budget The operating budget is departmentalized by function – Finance & Administration and Operations & Maintenance. Expenses for the combined departments are budgeted to increase by a net of $162,323, or a 5.88% increase compared to FY13. Finance & Administration Department Personnel: FY14 budgeted finance & administration expenses are $1,675,540, which is up $106,460, or 6.78%, from FY13. The Personnel section’s increase of $39,560 includes a 1.68% CPI salary adjustment and increased applicable taxes and benefits, with an unexpected increase in our unemployment insurance contribution rate from 2.05% to 7.15% on the first $12,900 of each person’s pay. We are anticipating only a 3% increase in health insurance costs, which will change in July. Services and Supplies: This category is up by $64,400, from $527,210 to $591,610. Significant changes include non-health Insurance costs being up by $7,900 with a total expense of $110,900, due mainly to the estimated premium cost for the $5.8 million EMAS bed that should be constructed in the summer; Lease Development Services up by $45,000; Consultants up $2,000 as we strive to find revenue alternatives and cost reductions; an increase of $3,470 in Dues, mainly to AAAE in order for the Airport Legislative Alliance to continue to provide the best representation for aviation on Capitol Hill; Other Services-Appraisals is down by $2,800 mainly due to the expected reduced use of appraisers; Office Supplies down by $2,500; and Utilities up by $10,910, mainly due to increased electricity usage by the runway lights. We believe the increased usage is from the taxiway Bravo lights and a project is budgeted to recable them (see page 62, Capital Improvements-Facilities). Other: This category shows an expense increase of $2,500, from $338,200 to $340,700. Public Relations/Marketing increased by $22,500, due to funding $15,000 for the AAAE General Aviation Issues conference that CEA will be hosting in July 2013. Local aviation related businesses will be sponsoring various activities to bring down the Airport’s total cost of the conference. Another event is the local BMW PGA Tour golf tournament in September which the Airport has budgeted $11,000 for sponsorship and promotional costs. The main decrease, NBAA Convention of $20,000, is from not attending or exhibiting at the October 2013 NBAA show in Las Vegas. Instead, Airport staff will exhibit at the January 2014 NBAA Dispatchers Conference in San Antonio, at a much reduced cost of $6,000 for the entire project. Operations and Maintenance Department: Overall, expenses are up $55,863 (4.69%) from the FY13 budget to $1,246,150. Personnel: this section’s increase of $26,523 to $669,340 reflects the salary and benefits for seven full-time and four seasonal personnel, with a 1.68% CPI salary adjustment and increased applicable taxes and benefits. We have also increased the training budget by $3,500; $2,000 for educational reimbursements and $1,500 for conducting a disaster drill.

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Services and Supplies: up $29,340 to $551,810 for FY14. The major changes are a $22,000 increase in Pavement Marking since we will be painting the major runway, 16/34, markings, centerlines and edges; a $19,000 increase in equipment rental for a four month winter lease of a large piece of snow equipment; and a $4,000 increase in Equipment/Tools for replacement radios. However, there are expected decreases in non-health Insurance of $8,900, Landscaping Services/Supplies of $6,500; and $4,500 in Misc Supplies.

Non-Operating Budget Items Interest Income: The budget shows a decrease in interest income from $13,304 to $9,450, a decrease of $5,654reflecting our decreasing cash balance and the continuing poor rate of return on investments. Other Expense: Bank Fees, which will remain basically the same. Debt Service: We expect an interest expense decrease of $15,516, from $210,221 to $194,705, mainly due to the decreased interest costs on the declining loan/note balances as the principal is paid down each month.

Capital Budget The Capital Budget includes expenses for Capital items (Improvements, Construction and Outlay), and Grant Service (“A” Projects). There are four categories of Capital expenditures: Capital Improvements, Capital Construction, Capital Outlay, and Grant Service. In all categories, the expected expense must be in excess of $2,000 to be included. With the exception of Grant Service, the capital items are fully-funded internally by the Airport. A Capital Improvement is a cost for an improvement on an already existing asset of the Airport. In contrast, a Capital Outlay is for the purchase of a new asset; except for buildings. Capital Construction is for buildings and major building improvements. Grant Service projects are only partially-funded by the Airport with additional State and Federal funds providing the remainder of the funding. Projects in this category are taken directly from the Transportation Improvement Program (TIPs) submitted annually to the Illinois Department of Transportation, Division of Aeronautics (IDOT), for projects eligible for state and federal grant funding. Illinois is one of 10 states that participate in the State Block Grant Program. Under this program, the State assumes responsibility for administering Airport Improvement Program (AIP) grants at general aviation and “other than primary” airports. Each State is responsible for determining which locations will receive funds for ongoing project administration. This year’s budget includes the following subcategories and is presented graphically in Figure 2 which follows:

Capital Improvements: Capital Improvements consists of $55,000 for facilities improvements, $30,000 for fence/gate/landscaping projects, and $190,926 for pavement/sewer projects. In subsequent years, remaining pavement surfaces will continue to be repaired on an incremental basis as engineering evaluations dictate and funding becomes available. The detail for these projects can be found on page 62.

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Capital Construction: none planned. Capital Outlay: The detail for this category is found on page 63. The Office Equipment budget of $32,000 includes a replacement computer server and work stations for staff. The vehicles sub-section, $174,000, includes refurbishing two pieces of snow equipment, including a 16 year-old snow broom (AP17), to extend the useful life of the items; a replacement of the 10 year-old dump truck (AP33), replacement of an 18 year-old pickup truck (AP6); a new tow behind magnetic sweeper to pick up metal, wire, and debris on the runways and taxiways; a ramp plow blade for the snow vehicle that is expected to be leased for the winter; and a paint sprayer that will save on future runway and taxiway painting expense. Shop Equipment includes $10,000 for a portable generator/light plant, and Other includes $20,000 for redesign of the Airport’s website. Grant Service: This information has been taken from the 1/11/13 Final Submittal of the Transportation Improvement Program: Airports FFY2014-2018. Congress has reduced funding levels for future projects from 95% to 90%. The State of Illinois increased their funding to 5% from 2.5% to make up half of the reduction, and the Airport’s funding has been changed to 5% instead of the previous 2.5%. This has doubled the cost of the Airport’s local share for most projects. We have budgeted $4,693,089 for the local share of Airport Improvement and State Grants for the “A” Projects. We are uncertain if any of these projects will be funded by the state and federal government, but they are still being budgeted. A listing of all the projects is shown in the Capital Budget section on pages 64-67. The construction resulting from these projects will continue to enhance the safety of this already safe Airport. New in this year’s Grant “A” budget are Estimated FY14 Revenues. Some of the projects require the State to pay the Airport and then we, in turn, pay the contractor, whereas, previously the State paid the contractors directly. We will show these payments received as grant revenue. Although the Airport’s final cost should be 5% of the total project cost, some of revenues listed for the projects are short of offsetting 95% of the cost. We cannot be certain that, for each listed project, the revenues will all be received in FY14, so we have reduced our estimated grant revenue budget. Another issue with grant revenue is that the FAA directed the State to implement a 10% funds holdback program as an incentive to encourage timely submittal of project closeout paperwork. The holdback funds are supposed to be released upon finalization of the project, which will delay receipt of the Airport’s reimbursement funds, and most likely will not be in FY14. The “B” projects are listed in the budget for informational purposes only and are not included in the expense numbers. It is highly unlikely that any of them will be funded. Also listed are the “C” category projects. These projects have already been paid for by the Airport and we are hoping to receive reimbursement from the FAA and State of Illinois. As there is little likelihood of these funds being received in FY14, they are not included in the budget numbers. Other: We have listed Grant-GA Entitlement for $148,500 under Revenues and an equivalent amount under Other for a Debt Service payment on the Capital Summary page

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61. It is uncertain whether or not these funds will be received. All GA Entitlement Funds received will be used to pay down the NE T-hangar note principal, so there is no effect on the budget for these two items.

Reserve/Replacement Funds: Establishing and funding reserves will allow the Airport to realize its long-term policy of remaining self-supporting. A Sewer Reserve sub-fund was established by the Airport Board in FY12 to allow for the future repair and maintenance of both the sanitary sewer and stormwater systems without the issuance of debt. We anticipate a $15,000 outlay as the final payment against the Hangar 43 sewer line extension, which had a cost of $30,000. To reduce future costs, the sewer line was extended during the construction of Hangar 42 in 2012, in anticipation of the eventual construction of Hangar 43 in the same area. There are no proposed plans for a Hangar 43 at this time. Sewer related revenues are deposited directly into the Sewer Reserve sub-fund, starting in FY14. The Capital Equipment Replacement sub-fund (CERF) was formally established by the Airport Board of Directors in FY13. The budget contains $250,000 for a CERF transfer. In order to avoid the issuance of debt, this sub-fund is used to set aside money, for not only capital equipment, but for the future construction, improvement, and repair of Airport buildings as well. As the six major Airport pieces of snow removal equipment age, they are being refurbished to extend their useful life, hopefully by 10 or more years. However, they cannot last indefinitely. The estimated cost of replacing the three snow brooms is $700,000 each, the snow blower is $300,000, and the two snow plows/sprayer/spreaders are $250,000 each, which totals $2,900,000. The plan is to have sufficient capital equipment reserves in place to cover the future replacement of these vehicles. Unfortunately, there aren’t sufficient reserve funds planned yet to replace/improve/repair the Airport’s office building, maintenance facility, and nine owned hangars. The Airport has contracted with a consultant to identify additional sources of revenue and possible cost savings to generate an improvement to the bottom line.

Below is a graphical presentation of the budgeted expenditures by major category:

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Operating and Reserve Funds Available The Airport uses a Joint Airport Fund for its operating activities. Revenues are deposited into this fund and operating expenses are drawn from it. Below is a summary of operating and reserve/replacement funds available from our unrestricted net assets:

Allocations of Reserves

Operating CERF Sewer Total

Estimated Balances @ 4/30/13 1,818,319 250,125 114,353 2,182,797 FY14 Budget:

Revenue Budget 4,056,225

4,324,102 Operating Expenses (2,921,690)

(2,921,690)

Other Income & Expense 6,550 1,000 500 8,050 Debt Service (498,953)

(498,953)

Transfer to CERF (250,000) 250,000

0 Capital Improve (Facilities/Paving) (275,926)

(25,000) (300,926)

Capital Outlay (Vehicles/Equip) (251,000)

(251,000) Capital Construction 0

0

Grant revenue 4,132,250

4,132,250 Grant Service “A” Projects (4,693,089)

(4,693,089)

Capital Other (148,500)

(148,500) Projected Results for FY14 (844,133) 251,000 243,377 (349,756)

Est Ending Balances @ 4/30/14 974,186 501,125 357,730 1,833,041

Less 25% required balance (730,423)

(730,423)

Est Surplus 243,763 501,125 357,730 1,102,618 The working capital projected as of April 30, 2013, plus those amounts to be realized during FY14, will fund the budgeted operating and capital outlays, and will provide a minimum balance to allow the Airport to operate. The Airport’s Business Plan requires that the Airport maintain an unrestricted net asset balance equal to 25% of the current year’s budgeted operating expenses, which would be $730,423 ($2,921,690 x 25%), plus the capital improvement and outlay balances totaling $526,926, plus sufficient funds to meet the local share requirements of the Grant Service “A” list approved projects for the year, which is $709,339 after expected offsetting revenues. The Business Plan also requires that operating expenses not exceed 90% of revenues. With the sewer fees removed, revenues would be $4,056,225. Total operating expenses of $2,921,690 are 72% of the adjusted revenues.

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Debt Obligations We expect an interest expense decrease of $15,516 to $194,705, mainly due to the decreased interest costs due to declining outstanding loan/note balances. In January 2004, the Airport, through its owning communities, entered into a loan arrangement with an area national bank for a loan totaling $1,237,000 for the purpose of constructing two buildings containing 10 small T-hangars each in the SW quadrant of the Airport. Repayment of the loan began in January 2005 with a 20-year period amortization period. The interest rate is variable to be reset every 5 years. Airport revenues generated by the new hangars will cover the required debt service over the period of the loan. A revenue anticipation note for $4,700,000 was issued in December 2006 by Northbrook Bank for the Village of Wheeling, one of the owning communities, to fund a portion of the purchase price of land designated as a runway safety area (RSA) for the Airport. The note was reduced by $1,500,000 in November 2008 and refinanced in April 2010 for 10 years with a balloon payment upon maturity. The Airport received a grant in April 2011 that was used to pay down $984,426 of the principal, thus reducing interest cost. Also in April 2010, a construction loan from Northbrook Bank of $2,300,000 was negotiated for the construction of six buildings containing 48 T-hangars in the NE quadrant. This note was interest only until June 1, 2011, when payment of both monthly principal and interest was required. The note matures in May 2020 with a balloon payment upon maturity. No general obligation bonds of either airport-owning community have been issued for the above borrowings, and no new loans or notes are planned to be issued at this time. The two T-hangar projects generate sufficient revenue to cover the principal and interest costs, plus operating expenses. The RSA note property is vacant land, therefore, no revenue is currently being generated to cover the approximately $230,000 annual debt service payment. Airport staff are 1) looking into reducing the size of the necessary runway safety area, sell off the unnecessary land, and use the proceeds to pay down the debt; 2) developing a revenue producing project on the land outside the building limits of the safety area to cover some or all of the debt payments; and 3) working with the FAA to obtain additional purchase cost reimbursement that would be applied to the outstanding debt. Any reduction in the debt payment would help alleviate the strain of funding upcoming capital projects and equipment as previously mentioned.

Legal Debt Margin Chicago Executive Airport is unable to issue debt in its own name. The foregoing SW T-hangar debt was issued in the names of the City of Prospect Heights and the Village of Wheeling with the debt service payments restricted from Airport revenue only. The two Northbrook Bank notes are issued in the Village of Wheeling’s name only.

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In the case of general obligation (GO) debt, the Airport's legal debt limitation is predicated on that of the two Municipalities. The City of Prospect Heights is a non-Home Rule Municipality; therefore, it is limited to the amount of debt it can issue without referendum approval. The limitation is based on the total Equalized Assessed Valuation (EAV) of real property located within the City. For the fiscal year ending April 30, 2012, Prospect Heights’ statutory debt limit was $38,003.749, providing a debt margin of $20,078,749 after deducting their existing debt of $17,925,000. The Village of Wheeling is an Illinois Home Rule community and has no statutory limit. As a result, the acceptable level of debt outstanding for the Village is solely determined by the Village Board. Accordingly, the general obligation debt limit of the Chicago Executive Airport is also that of the City of Prospect Heights, which is $20,078,749. The Airport’s expected debt balance, as of April 30, 2013, is $4,732,207, per the schedule found on page 56.

Budget Adoption The Chicago Executive Airport budget is recommended by resolution of the Chicago Executive Airport Board of Directors for adoption by both Municipalities in accordance with the Intergovernmental Agreement (IGA). The IGA requires that neither Municipality shall be required to expend funds other than Airport Revenue for the operation of the Airport. The budget is prepared using an accrual basis and recognizes revenues and expenses earned or incurred during the fiscal year. Depreciation and amortization are not included in the budget. The Airport has an April 30 Fiscal Year Ending date. Accordingly, the budget must be adopted by both Municipalities before May 1st, which is the beginning date of the new fiscal year. Should this not happen, according to Section 3.A.6 of the IGA , “the Board is authorized to proceed with funding and expenditures on a temporary basis under the prior year's approved budget until such time as the Municipalities approve the current budget.”

Budget Calendar The Chicago Executive Airport budget process begins in July with the development of the Transportation Improvement Program (TIP). This program is the foundation for the “A” Project Grant Services section of the Capital Budget. Information is gathered and analyzed and the annual budget is prepared by staff. It is then reviewed and recommended for adoption by the Board of Directors with final adoption by both Municipalities. A time line of the budget process is a follows: June TIPs prepared August TIPs finalized December-February Budget prepared and reviewed by staff March Budget reviewed and approved by the Board April Budget approved and adopted by the Municipalities The Airport does encourage earlier review and approval by the Board of Directors and Municipalities whenever possible.

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Budget Amendments

Airport management maintains category level budget control; enabling staff to quickly respond to minor changes in spending plans – a feature a business-type activity, like the Airport, needs today. Chicago Executive Airport, the City of Prospect Heights, and the Village of Wheeling recognize that, from time to time, expenses might exceed a Department’s or Capital Section budgeted total. In this instance, a budget amendment must be approved by the Airport Board of Directors and further approved by the two municipalities.

Budget Reporting The finance staff of the Airport prepare monthly budget to actual reports for the Airport Board of Directors at the category level. Additionally, unaudited monthly financial statements, including a Statement of Revenues, Expenditures and Net Income; Statements of Department Expenses, Sewer Reserves and Capital Equipment Reserve Funds; a Capital Budget, a Funds Portfolio report, and a Budget Variance Report are prepared and submitted monthly to the Airport Board for review.

Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Chicago Executive Airport Commission, Illinois for its annual budget for the fiscal year beginning May 1, 2012. The Airport earned its first award for the budget year beginning May 1, 1996. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

Acknowledgement Finally, the preparers of this report would like to extend their gratitude to the administrative staff for their help in preparing this report.

Dennis G. Rouleau Rita Boserup Airport Manager Chief Financial Officer

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Revenue Budget

Hangar 18 under construction; expected completion September 2013

CHICAGO EXECUTIVE AIRPORT Revenue Budget

For the Fiscal Year Ended April 30, 2014

Difference %FY11 FY12 FY13 FY14 FY14 Budget

Account Title Actual Actual Budget Budget vs FY13 Change

Operating RevenuesRevenue-Long Term Leases $ 1,806,408 $ 1,917,757 $ 2,083,102 $ 2,204,642 $ 121,540 5.83 %Revenue-Easement Fees - - 26,260 27,500 1,240 4.72Revenue-Short Term Rentals 115,344 115,344 115,344 122,355 7,011 6.08Revenue-T-Hangars -Old 143,825 - - - - -Revenue-T-Hangar SW 26,922 112,425 112,360 115,740 3,380 3.01Revenue-T-Hangar NE 61,363 253,147 255,264 259,400 4,136 1.62Revenue-Tie-Downs-Area 2 29,868 21,628 22,000 15,500 (6,500) (29.55)Revenue-Tie-Downs-Area 3 35,355 29,543 29,700 24,000 (5,700) (19.19)Revenue-Fuel Flowage Jet A 603,167 475,799 494,000 495,000 1,000 .20Revenue-Fuel Flowage-100LL 26,769 22,179 23,000 25,800 2,800 12.17Revenue-Fuel Flowage-Off Airp - 97,319 109,000 95,000 (14,000) (12.84)Revenue-Permits/COP 28,059 29,271 29,670 36,940 7,270 24.50Revenue-Permits/Vehicles 20 10 3,000 2,540 (460) (15.33)Revenue-Permits/Security Card - 5 5 - (5) (100.00)Revenue-Access Fee - - - 15,000 15,000 -Revenue-Late Charges 5,862 6,940 2,000 3,600 1,600 80.00Revenue-Other/Fuel Mgmt Fees 3,200 3,000 3,062 3,048 (14) (.46)Revenue-Customs Service Chge 269,898 278,039 250,000 250,000 - -Revenue-Other Misc. 1,469 4,359 500 1,000 500 100.00Revenue-Waiting List Fees - - 100 100 - -Revenue-Parking Decals 125 125 100 100 - -Revenue-Sign Rental 12,832 10,005 7,501 3,960 (3,541) (47.21)Revenue-GA Issues Conf Donat - - - 5,000 5,000 -Revenue-ACE Event - 2,350 - - - -Revenue-Pending Agreement - - - 350,000 350,000 -Revenue-Insurance Reimb - 28,209 - - - -Accounts Receivable Bad Debt (1,268) (954) - - - -Revenues Before Sewer Fees 3,169,217 3,406,500 3,565,968 4,056,225 490,257 13.75 %

Revenue-Sewer Fees* 27,546 76,020 197,263 - (197,263) (100.00)Total Sewer Revenues* 27,546 76,020 197,263 - (197,263) (100.00) %

Total Operating Revenues 3,196,763 3,482,520 3,763,231 4,056,225 292,994 7.79 %

* Sewer revenues will be received directly into the Sewer Reserve Fund in FY14.

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Discussion-Revenues Total revenue is budgeted at $4,056,225, an increase of $490,257, or 13.75% from the previous year. The percentage of each major revenue category compared to total revenues is indicated on the following graph entitled Revenues by Source.

Each major revenue category is discussed as follows: Long-Term Leases – We estimate that budgeted revenue will increase by $121,540 to $2,204,642 in FY14. The new hangar constructed by Atlantic Aviation opened November 2012, so this year’s budget reflects a full year’s rent of $83,895. In addition, an additional corporate hangar is being constructed off of Tower Road in the South East Quadrant. We anticipate occupancy of this new building in September 2013, with the prorated rent to be $30,000 in FY14. The Airport has long recognized the importance of adjusting revenues to follow the inflationary increases in expenses. To this end, all leases incorporate yearly adjustments tied to the percent of change in the CPI to offset any increase in expenses. The rents are increased by an estimated CPI of 2%, based on the actual CPI increase for 2012 of 1.68%. Also, the Airport has recognized the importance of earning a return on its primary resource, land. As land became available for development, ground leases have been negotiated with prospective tenants. The 2013 ground lease rate is $.63545 sq. ft. per annum and increases annually by the CPI.

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Fuel Flowage Fees - The total fuel flowage fees received are budgeted using the same gallons as actually sold by the FBOs in calendar year 2012. However, the fee will increase to a CPI adjusted rate of $.1255/gallon for On-Airport sales and $.2510/gallon for Off-Airport sales, effective May 1st. An Off-Airport tenant has access to the airfield but does not lease land or a building directly from the Airport. Off-Airport tenants pay double the fuel flowage fee charged to On-Airport tenants. Currently two properties are considered Off-Airport: Hangar 12 and the “Dog House” Hangar. T-Hangar - T-hangar revenue will increase due to the CPI increase for all 48 units. We have budgeted conservatively, assuming one unit in the SW Ts will be vacant for three months and one unit vacant in the NE Ts for 12 months. As of April 1, 2013, all the units were rented and there are two people on the waiting list. One-Time Revenue – New to the budget is a One-Time Revenue of $350,000 for a payment under a pending agreement. A memorandum of agreement has been signed by the participating parties; however, the final agreement needs to be signed and then approved by both owning communities and the FAA. We believe that this transaction will be concluded successfully, and therefore, have included it in the budget. U.S. Customs Service – As this revenue is varies, we are budgeting revenue to be the same as FY13, which is $250,000. It is anticipated that income from user fees will continue meet operating costs. The Airport intends to operate this service on a breakeven basis over the long run. Sewer & Stormwater Fees –These fees are now being received directly into the recently formed Sewer Reserve Fund. This Fund has been set up to provide for future sewer and stormwater system maintenance and repair. Short-Term Rentals – Short-term rentals represent two connected hangars, the rental of which is on a month-to-month basis. The rental rates are adjusted for the CPI increases back to the start of the rental in 2009, resulting in an expected increase of $7,000. Tie-down – Tie-down revenues are estimated to decrease compared to last year, so the FY14 budget shows a reduction in revenue of $12,200 for the year. Permits/Fees - The Commercial Operating Permit fees for Air Taxi Services, Car Rental Services, and other commercial operations will increase by the annual CPI increase, which is 1.68%. We show an increase of $6,800 in this category as more commercial operations are identified on the Airport. Easement Fees – The Airport currently has one tenant that pays an easement fee, which will be increased by the annual CPI adjustment of 1.68%. Access Fees – New to the budget is a multi-year access fee of $15,000. This is part of the pending agreement mentioned under the One-Time Revenue. This revenue is directly offset against the pending purchase of property that is included in Capital Outlay-Other on page 63, and is subject to the annual CPI increase.

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Sign Rental – We show a decrease in revenue of $3,500 due to the closing of the 94th Aero Squadron Restaurant and the taking down of their sign; plus Hertz is no longer doing business at the Signature Flight Support building, so their sign has been removed from the entrance road pillars. However, the remaining rental will be increased by the 1.68% CPI adjustment. Other – New in the Other category is GA Issues Conference donations. The Airport is hosting the July 2013 conference and various aviation related businesses are sponsoring different aspects of the conference. Late Charges - Late charges are assessed on late payments and are specified as a term of the lease agreement. Late charges are not affected by CPI adjustments.

Sources of Revenue Following is a chart showing a comparison of major revenues for the FY11 and FY12 Actuals, and FY13 and FY14 Budgeted:

4/9/2013 27

Operating RevenuesFY14 Budget

Line Item Detail within Category

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

40000.00 Long Term Leases - 2,204,642$ 2,173,710 2,083,102 121,540 Long term revenue is derived from leases with a term of more than one (1) year. These leases are comprised of hangar, building and ground leases. To the extent possible, lease rents increase annually with the CPI. Following are the leases presently in effect and proposed to be in effect during FY14. We are assuming a 1.68% CPI increase for 2013; the FY13 change was 2.06%.The 2012 ground lease rate is .62495 per square foot, 2013 will be .63545

Property FY14 Projected FY13Hangar #5 & #6 302,375 298,473 296,302 Hangar #8 236,218 233,868 232,562 Hangar #9 328,088 324,825 323,010 Hangar #10 255,745 253,201 251,786 Hangar #11 IPO 119,560 117,703 118,617 Hangar #13-revenue split 4,100 4,110 3,990 Ground Lease - ACCO 7,193 2 7,193 7,725 Ground Lease - Hangar 15 68,370 67,306 67,480 Ground Lease - Hangar 16 35,569 35,519 35,041 Ground Lease - Hangar 18 29,872 4 0Ground Lease - Hangar 19 64,643 63,637 63,801 Ground Lease - Hangar 20 36,568 35,981 36,117 Ground Lease - Fuel Farm 2,813 2,767 2,774 Ground Lease - Hangar 40 118,068 111,519 108,371 Ground Lease - Hangar 41 79,858 83,616 88,092 Ground Lease - Hangar 42 83,895 1 52,843 5 20,000Ground Lease - Exec Inn Pkg Lot - 3 3,539 4,500 Ground Lease - SFS Ramp 74,765 74,660 73,655 Ground Lease - SFS Terminal (24) 180,658 180,407 177,976 Ground Lease - Sovereign 226,281 222,543 221,303

2,254,642 2,133,102 Less: Rent Reserve (50,000) (50,000)

2,204,642 2,083,102

1) Newly constructed with occupancy in November 2012. Rent on all 3 Atlantic hangarsto be adjusted due to reconfiguring lot sizes. 2) CPI increase only done every five years, due again in 2015.3) The Airport took back its property in November 2012.4) Occupancy is expected September 1, 2013. Monthly rent is $3,734, annually $44,807. 5) Additional rent received due to early completion and use of the ramp only for 5 months.

Operating Revenue Budget

4/9/2013 28

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Fuel Flowage Fees 615,800$ 614,000 626,000 (10,200) Fees received from fuel flowage and were adjusted for the 1.68% 2013 CPI increase. The estimates are based on the 12 months actual for 2012. As jet aircraft are becoming more fuel efficient, we do notanticipate an increase in gallons sold over 2012.Fuel flowage is paid when the fuel is put into the FBO fuel tanks, not into the aircraft.

40460.01 JetA-On Arpt, 3,939 mil gal @ $.1255 495,000 495,000 494,000 40460.03 JetA-Off Arpt, 395,000 gal @ $.2510 95,000 92,000 109,000 40460.02 100LL, 205,000 gal @ $.1255/gal. 25,800 27,000 23,000

T-Hangars - 375,140$ 375,165 367,624 7,516 Rents are adjusted by the 2013 CPI change of 1.68.SW-Bldng 50 rent per month $4,468, bldng 51 = $5,299, possible total $9,767, annual $117,204.NE-40 small, 6 medium, and 2 large units; possible monthly rent of $22,078, annual of $264,936.Subtracting a vacancy rate of 3 months of 1 unit avg for SW ($1,465) and 1 full unit of NE ($5,520).

40200-01 SW T-hangars 115,740 115,283 112,360 40200-02 NE T-hangars 259,400 259,882 255,264

One-time revenue 350,000$ - - 350,000 Pending agreement one-time property payment

40550.02 U.S. Customs Service - 250,000$ 258,000 250,000 - U.S. Customs inspection service - this is a break-even service we provide to CEA users.

40005.00 Sewer & Stormwater FeesPrior to FY14, this revenue was transferred to a sewer maintenance reserve fund as it was paid.In FY14, sewer revenue is received directly into the fund, thereby eliminating the transfer.

40100.00 Short Term Rental - 122,355$ 115,344 115,344 7,011 Hangar #4 & #7 month-to-month rental, adjusted by CPI increases back to the lease start dates.Eclipse 107,614 101,508 101,508 SFS 14,741 13,836 13,836

Tie-Downs - 39,500$ 43,917 51,700 (12,200) Area 2 expected rent for FY14, 8 spots = $15,264. Rates increased by $1 to $159Area 3 expected rent for FY14, 20 spots = $23,520. Rates increased by $1 to $98We do not anticipate an increase in the number of tie-down tenants at this time.

40310.02 Area #2 15,500 17,793 22,000 40310.03 Area #3 24,000 26,124 29,700

Operating Revenue Budget

4/9/2013 29

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Permits/Fees - 39,480$ 33,581 32,675 6,805 Revenue derived from monthly Commercial Operating Permits (COP), which were subject to the 2012CPI increase of 1.68%. Air taxi is a terminal charge of $30 per flight, plus monthly COP of $77.

40470.01 COP 6 @ $77 5,544 5,472 4,560 40470.01 COP 2 @ $357 8,568 8,533 8,424 40470.01 COP 11 @ $154 20,328 14,647 14,496 40470.01 COP 1 @ air taxi (3 months) 2,500 2,429 2,190 40470.02 Vehicle, fuel 11@$203, misc 3@$102 2,540 2,500 3,000 40470.04 Security Cards - - 5

40007.00 Easement Fees 27,500$ 26,898 26,260 1,240 Waste Management-stormwater, drainage & detention easement fee, adjusted for CPI increase.

40490.01 Access Fee 15,000$ - - 15,000 Agreement in process.Due annually, for the term of the agreement. The first $180,000 in payments to be offset against the Airport'spurchase of a property, then due in cash. Subject to annual CPI increase.

40550.09 Sign Rental 3,960$ 3,012 7,501 (3,541) CPI increase of 1.68%. 94th Aero Restaurant closed and the sign was taken down in the summer of 2012.Monument sign rental-SFS @ $330 3,960 3,900 3,878 Priester-Milwaukee Ave 94th sign 0 (888) 3,623

Other - 9,248$ 4,525 3,762 5,486 Revenue from other miscellaneous sources (parking decals, plan fees, flag sales, etc).The fuel management fee is for the use of the Airport's vehicle fueling station.

40550.01 Fuel mngmt (CPI + 1.68%) $254 mthly 3,048 3,000 3,062 40550.04 Other Miscellaneous 1,000 1,100 500 40550.05 Waiting List Fees (cancellations) 100 350 100 40550.08 Parking decals 100 75 100 40550.10 GA Issues Conf donations 5,000

40500.00 Late Charges - 3,600$ 6,731 2,000 1,600 Late charges are generally assessed at 10% per month for all T-hangar and most larger tenant leases.The majority of the FY13 late charges were due to one large tenant. This issue was resolved in November 2012.

Total Revenues 4,056,225$ 3,654,883$ 3,565,968$ 490,257

% Change from FY13* 13.75%* adjusted for moving sewer revenue to the sewer reserve fund

30

Operating Budget

Finance & Administration Expenses

Operations & Maintenance Expenses

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31

Department of Finance & Administrative Services

CHICAGO EXECUTIVE AIRPORTAdministration Expense Budget

For the Fiscal Year Ended April 30, 2014

Difference % FY11 FY12 FY13 FY14 FY14 Budget

Actual Actual Budget Budget vs FY13 Change

Personnel ServicesSalaries-Full Time $ 392,004 $ 460,559 $ 482,000 $ 505,000 $ 23,000 4.77 %Salaries-Part Time 17,741 5,203 14,000 14,170 170 1.21Overtime 4,165 5,461 5,000 3,000 (2,000) (40.00)Service Award/Recognition 9,595 36,747 14,970 14,410 (560) (3.74)Payroll Taxes 27,431 37,124 37,850 44,600 6,750 17.83Insurance-Medical 57,838 75,917 96,000 106,500 10,500 10.94Retirement contribution 17,342 22,326 24,250 24,250 - -Training 95 720 800 2,500 1,700 212.50Board/Community Reimb 28,200 28,400 28,800 28,800 - -

Total Personnel Serv. 554,412 672,458 703,670 743,230 39,560 5.62 %

Services and SuppliesAirport Meetings 10,681 13,096 13,000 15,000 2,000 15.38Audit Services 12,317 12,132 12,500 11,200 (1,300) (10.40)Building Repair 687 1,735 2,500 2,500 - -Computers & Software 24,936 35,104 35,000 32,000 (3,000) (8.57)Conf & Meeting Reg Fees 3,401 4,906 5,930 5,350 (580) (9.78)Consultants 84,074 9,955 26,000 28,000 2,000 7.69Engineering Services 69,725 84,020 60,000 60,000 - -Equipment 1,854 6,054 5,000 2,000 (3,000) (60.00)Equip Rental and Maint. 6,437 6,527 7,250 7,000 (250) (3.45)Fuel 5,331 6,674 7,000 8,500 1,500 21.43Insurance 115,073 106,077 103,000 110,900 7,900 7.67Lease Development 94 35,462 10,000 55,000 45,000 450.00Legal Services 60,019 51,723 60,000 60,000 - -Membership Dues 9,150 8,878 9,810 13,280 3,470 35.37Office Maintenance 9,044 10,649 11,870 11,870 - -Other Services 15,654 46,247 25,450 22,650 (2,800) (11.00)Postage 2,855 2,735 4,000 3,000 (1,000) (25.00)Printing 167 88 2,000 2,000 - -Public Notices 905 701 3,000 2,000 (1,000) (33.33)Subscriptions 4,062 3,812 4,400 3,800 (600) (13.64)Supplies 6,575 7,641 9,500 11,000 1,500 15.79Telephone/Data 5,821 7,605 8,100 10,100 2,000 24.69Travel Expenses 4,547 6,867 8,400 10,050 1,650 19.64Utilities 72,563 89,886 87,500 98,410 10,910 12.47Vehicle Maint. 2,473 2,489 6,000 6,000 - -

Total Services & Supplies 528,444 561,064 527,210 591,610 64,400 12.22 %

OtherNBAA Convention 69,617 68,873 20,000 - (20,000) (100.00)Public Relations/Marketing 69,688 113,904 43,200 65,700 22,500 52.08Customs Schedule 4 244,062 229,638 250,000 250,000 - -Contingencies - - 25,000 25,000 - -

Total Other 383,368 412,415 338,200 340,700 2,500 .74 %

Total Administration Exp. 1,466,223 1,645,937 1,569,080 1,675,540 106,460 6.78 %

34

4/9/2013 35

Administration DepartmentFY14 Budget

Line Item Detail within Category

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Personnel Services

50400.10 Salaries - Full-time 505,000$ 480,716 482,000 23,000Salaries of six full-time existing department personnel.

50300.05 Salaries - Part-time 14,170$ 9,900 14,000 170Salary for one management intern. One employee at $10.90/hr. for 52 weeks @ 25 hours/week.

50200.05 Overtime - 3,000$ 1,206 5,000 (2,000)Overtime costs as required for non-exempt employees of department.

Service Awards/Recognition 14,410$ 12,648 14,970 (560)50700.10 Holiday party -Board/staff/officials 9,000 7,036 9,500 50700.10 Holiday lunch - Staff in-house 300 264 300 50700.15 Other-flowers, plaques, retirement 1,000 1,238 1,000 50700.17 Staff recog ($30 gift cert x 2, 7 emp) 360 360 420 50700.17 Incentive program 2,500 2,500 2,500 50700.20 Service Awards 1,250 1,250 1,250

Pay for 1 employee with greater than twenty (20) years of service at $1,000, 1 with greater than 5 years at $250 each.

Payroll taxes - 44,600$ 125,240 37,850 6,750Payroll taxes as follows:

50500.05 FICA, 6.20%, Medicare 1.45% 38,000 35,443 36,000 50500.15 Unemployment, (7.15%, was 2.05%) 6,600 5,579 1,850

Insurance - 106,500$ 84,218 96,000 10,500Premiums for employee insurance, provided by the Airport. Wheeling is projecting a 6.4% insurance increase; renewal date is July 1st.

50100.05 Disability (6) 9,500 7,183 9,000 50100.15 Health (6) 97,000 77,035 87,000

Administration Department Budget

4/9/2013 36

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Retirement Contribution - 24,250$ 19,928 24,250 0Full time employee Retirement Contributions @ 4.5% of pay.

50600.05 Employer Contributions 23,000 18,678 23,000 50600.15 Annual fees ($250 annual + $250/qtr.) 1,250 1,250 1,250

Training - 2,500$ 264 800 1,70050800.05 CPE-seminars - - 300 50800.10 Training-Other 500 264 500 50800.11 Education reimbursement 2,000

50400.05 Board/Community Reimb 28,800$ 27,780 28,800 0Stipends for Airport Board of Directors at $250 each for 12 meetings. The Chairman receives$400 per meeting for 12 meetings. Each community receives $3,000 per year for admin costs.

50400.05 Community Reimbursement 6,000 6,000 6,000 50400.05 Board stipends 22,800 21,780 22,800

Total Personnel Services 743,230$ 761,902$ 703,670$ 39,560$

-

SERVICES AND SUPPLIES

Airport Meetings 15,000$ 9,886 13,000 2,000Provisions and costs incurred for in-house, BOD meetings, and staff purposes.Two community joint meetings tentatively scheduled for the fall and spring.

54060.15 Airport Meetings 10,000 9,112 8,000 52120.20 Joint Meetings (dinner) 5,000 774 5,000

Audit Services - 11,200$ 11,055 12,500 (1,300)52060.05 Cost to perform the annual audit 10,600 10,500 10,400 52060.05 Single audit cost (if necessary) - - 1,500 52060.10 GFOA CAFR (400) & Budget 600 555 600

award (200) fees

52090.05 Building Repairs - 2,500$ 1,493 2,500 0Cost for minor repairs or modifications of the administration office.

Administration Department Budget

4/9/2013 37

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Computer & Software 36,000$ 29,215 35,000 1,000Accounting and other administrative software purchases, update and support programs-Timberline (2300),Qquest Timeclock (250), FAS (1035), Symantec (884), SonicWall (105) and related training.Purchase of 2 iPads (550 each)

54420.05 Software & maint 6,000 5,316 6,000 54480.05 Hardware & Supplies 4,000 720 4,000 52210.05 Office network maintenance 16,000 15,664 15,000 52540.05 Web hosting/internet service 10,000 7,515 10,000

Conf and Meeting Registration 5,350$ 2,835 5,930 (580)Registration fees for conferences, seminars, and lunch meetings (Chamber).

52120.05 AAAE Conf TBD-Dennis 800 52120.05 AAAE-Annual, Reno Jamie 800 - 800 52120.05 AAAE-Finance-Florida Rita 500 - 500 52120.10 FAA Conf (Chicago) 0 0 - 450 52120.15 IGFOA Conf (Bloomington) 1 350 315 300 52120.15 GFOA Conf (Chicago) 1 0 - 380 52120.16 CABAA Meetings-monthly 400 219 500 52120.17 IL Aviatn Conf (Moline) 3 700 620 800 52120.19 IPAA Fall Conf (Galena) 3 1,000 984 1,200 52120.25 Meetings & Luncheons 800 697 1,000

Consultants - 28,000$ 15,647 26,000 2,00052510.08 Storm water consultant (LFR-Arcadis) 6,000 5,400 6,000 52540.20 Consultant - special projects 22,000 10,247 20,000

Includes, but not limited to: financial analysis; new personnel manual; Aviation Mgt Consulting Group. PrimaryGuiding document review, commercial operating permit revision, revenue diversification.

52180.10 Engineering Services - 60,000$ 60,000 60,000 0Costs for professional engineering services rendered by an outside engineer.

54090.05 Equipment 2,000$ 1,443 5,000 (3,000)Administrative equipment and furniture purchased that cost less than $2,000, individually.

Administration Department Budget

4/9/2013 38

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Equipment Rental and Maint 7,000$ 4,635 7,250 (250)Office equipment rental and maintenance cost-meter rent (800), maint base (450), ink (2 @150ea).Ricoh copier maint (920 annual), Konica-copy charges only.

52210.15 Mail machine-meter & base maint 1,500 1,056 1,550 plus meter annual rental & supplies -

52210.20 Other repairs 500 - 500 52210.25 Copiers-2 (per page charges) 5,000 3,579 5,000 52210.35 Telephone - - 200

54150.05 Fuel - 8,500$ 7,815 7,000 1,500Unleaded fuel cost for four department vehicles.

Insurance - 110,900$ 90,265 103,000 7,900The 5 year environmental policy expires July 2013. All the other policies run Dec 1 through Nov 30th. NationAir is the Airport's insurance broker, whose fixed fee contract runs through Dec 2014.We are anticipating the first EMAS bed will be finished in FY14, therefore the need for insurance.The annual expected cost of Airport insurance is as follows:

52300.05 Commercial Automobile 6,000 4,452 5,800 52300.09 Broker fee 9,500 9,000 9,000 52300.10 Commercial Crime 2,500 1,356 1,600 52300.15 Airport Liability (incl. excess liability) 27,500 24,867 32,000 52300.20 Commercial Property 24,500 20,869 23,500 52300.25 Public Officials Liability 17,500 16,573 17,500 52300.26 Environmental 15,000 11,759 11,800 52300.30 Worker's Comp 1,400 1,389 1,800 52300.35 EMAS System insurance (estimate) 7,000

56200.05 Lease Development - 55,000$ 54,841 10,000 45,000Expenses incurred for new leases, i.e. survey, site selection, legal including reimbursable items.

52360.05 Legal Services - 60,000$ 60,000 60,000 0Costs for the professional legal services provided by outside counsel.

Membership Dues - 13,280$ 11,825 9,810 3,470Department employee and Airport membership dues as follows:

52450.05 AAAE (3) @$275 900 825 825 52450.07 AAAE Great Lakes Chapter (2) 80 70 80 52450.37 AAAE Regulatory and Legislative 7,000 6,750 3,800 52450.12 AOPA 50 - 50

Administration Department Budget

4/9/2013 39

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

52450.36 CABAA 300 275 300 52450.17 Chamber of Comm/CVB 250 200 250 52450.20 GFOA (1) 200 160 200 52450.21 IGFOA (2) 400 125 230 52450.30 IPAA (1) 1,500 1,500 1,500 52450.27 NATA/IATA 1,200 1,108 1,100 52450.35 NBAA 500 440 675 52450.40 IL CPA Society 400 372 300 52450.41 GA Airport Coalition (GAAC) 500 500 500

Office Maintenance - 11,870$ 11,179 11,870 0Cost for routine office janitorial service.

52480.10 Janitorial serv $794 and supplies 10,350 9,820 10,350 52480.15 Rug runners 800 737 800 52480.20 Insect/Rodent control-$60 per 720 621 720

Other Services - 22,650$ 19,845 25,450 (2,800)Costs for other services not specifically listed any other categories.

52420.15 Medical exams & drug testing plus 500 375 150 annual hearing and vision exams. -

52510.02 Records disposal and storage 500 - 500 52510.05 Credit crd, GovDeal, bckgrnd ck fees 1,200 1,105 1,000 52510.06 Casualty loss deductibles, 1 @$5,000 5,000 - 5,000 52510.10 Payroll serv-switch to Paychex 1/12 2,200 2,085 2,200 52510.11 Employee Hiring Exp 2,100 2,065 - 52510.12 Office Security-ADT (qtr 1075) 4,400 4,379 4,100 52720.20 Alarm line-Office (145 mth) 1,750 1,675 1,500 52720.20 Alarm line-hgr 4&7 (32 but net=0) 0 - 052510.15 Appraisals 4,000 7,300 10,000 52540.23 Satellite programming 1,000 860 1,000

52600.15 Postage - 3,000$ 2,019 4,000 (1,000)Cost for letter, parcel delivery, overnight delivery, and newsletter mailings.

Printing - 2,000$ 1,544 2,000 052630.05 Aerial photography 1,000 829 1,000 52630.15 Duplication/enlarging/binding 1,000 715 1,000

52660.05 Public Notices - 2,000$ 813 3,000 (1,000)Publication costs for public notices, bid documents, personnel ads, etc.

Administration Department Budget

4/9/2013 40

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Subscriptions - 3,800$ 3,320 4,400 (600)Periodicals subscribed to by department personnel as follows: Crains ($200), Daily Herald (225)and Misc books and maps.

54450.31 Flight Tracker 3,300 3,135 3,800 54450.40 Subscriptions-misc 500 185 600

54480.15 Supplies - 7,000$ 5,316 9,500 (2,500)Purchase of stationary and office, computer, and copier supplies.

Telephone/Data 10,100$ 7,941 8,100 2,00052720.05 Cellular-Sprint (2) 3,000 2,455 2,100 52720.10 Local, long distance, fax 5,200 5,187 6,000 52720.12 Pilot lounge wireless 700 300 052720.03 iPad data plans-2 @ $50 each/mth 1,200

Travel Expenses 10,050$ 4,863 8,400 1,650Travel costs (commercial transportation, $500; ground transportation, $50/day; hotel,$175/night; meals and $50 per diem associated with attendance at conferences for department employees.

52750.05 AAAE-Conf TBD Dennis 2,500 1,142 052750.05 AAAE-GA Issues (Reno NV) Jamie 2,500 1,667 2,500 52750.05 AAAE-Finance (Florida) Rita 1,200 0 1,200 52750.07 IPAA Conf-Fall (Galena) (3) 1,500 1,260 2,200 52750.09 IL Aviation Conf (3) 1,000 254 1,000 52750.10 IGFOA Conference-IL 350 297 300 52750.10 GFOA Conf (Chicago) 0 0 200 52750.11 Other 1,000 243 1,000

Utilities 98,410$ 86,187 87,500 10,910Monthly electric, natural gas, and water cost as follows:

Electricity:52150.02 141378911, Gate 31 50 49 50 52150.03 141595480, Runway Lights 2,800 2,407 1,400 52150.04 141458406, Hgr 4 rd, blast fence 700 628 100 52150.05 141595499, Maint/Admin. Office 12,000 10,887 10,000 52150.08 115131215, Gate #27 500 429 300 52150.11 141437116 Hangar 4&7 (shd be 0) 0 - 052150.15 141599876, 12 REIL Lts, Blast Fnce 700 669 700 52150.17 141650725-CAP Trailer Gate 300 200 500 52150.20 141195850, Electric Vault 45,000 42,144 35,000

Administration Department Budget

4/9/2013 41

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

52150.22 140401329, Hangar #50 800 791 800 52150.23 140401326, Hangar #51 1,200 1,097 1,200 52150.28 140291821 Beacon 360 291 350 52150.31 NE T-Hangars #52 (lounge) 3,500 3,337 3,500 52150.32 NE T-Hangars #53 (lights) 2,000 1,151 2,000 52150.33 NE T-Hangars #54 (bath) 3,000 2,292 3,000 52150.34 NE T-Hangars #55 (lights) 2,000 1,099 2,000 52150.35 NE T-Hangars #56 (bath) 3,200 2,091 3,200 52150.36 NE T-Hangars #57 (lights) 2,500 2,287 2,500 52150.16 Elec-Taxiway Q pole light (flat rate) 500 0 500

Gas:52150.26 3722672, Generator 1,200 932 1,500 52150.27 Hangar 4&7 (shd be 0) 0 0 052150.50 2584479, Maintenance 4,000 3,111 5,000 52150.55 3326641, Admin. Office 1,200 959 1,200

Water:52150.60 Water-Maint./Admin. Office (1020) 1,800 1,893 1,800 52150.61 Water-Entry Sign Area 7,000 5,501 8,000 52150.62 Water-SW T-Hangar 50 & 51 1,800 1,639 2,300 52150.63 Water-NE T-Hangar 52 (1018) 100 101 200 52150.64 Water-NE T-Hangar 54 (1014) 100 101 200 52150.65 Water-NE T-Hangar 56 (1010) 100 101 200

Vehicle Maintenance - 6,000$ 4,679 6,000 0Vehicle maintenance service costs for four (4) administrative vehicles.

54510.05 Airport #1, 2006 Expedition 1,000 2,140 1,000 54510.06 Airport #2, 2002 Tahoe 2,500 223 2,500 54510.07 Airport #7, 1997 Tour Van 1,250 16 1,250 54510.37 Airport #37, 2006 Taurus Sedan 1,250 2,300 1,250

Total Services and Supplies 591,610$ 508,659$ 527,210$ 64,400$

OTHERNBAA Convention - -$ 9,337 20,000 (20,000)Not exhibiting or attendancing the NBAA Convention in Las Vegas October 22-24, 2013.Large exhibit booth sold in 2012, replaced by lightweight booth.

56300.15 Exhibitor fee 0 - - 56300.16 Exhibit expenses 0 - - 56300.21 Exhibit storage fees 0 1,213 3,000 56300.18 Exhibit shipping 0 - 2,000 56300.19 Travel Exp-staff (2) 0 2,307 3,000 56300.20 Travel Exp-CEA board members-2 0 3,556 12,000 56300.22 Travel-Communities 0 2,261 -

Administration Department Budget

4/9/2013 42

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Public Relations/Marketing 65,700$ 31,177 43,200 22,50052405.05 Marketing specialists 5,000 2,867 5,000 52405.10 Projects, videos, photos 3,000 440 5,000 54255.05 Promo material- 10,000 6,765 6,000

Materials include golf balls and bags, pens, cards, mugs, magnets, planes, and lined pads.Additional promo material needed for Dispatch Conference giveaways.

54255.22 Promo clothing 3,500 1,387 3,500 52405.15 PACE expenses 100 - 100 54255.20 Special events 26,000 3,000

FY14 Special events: $15,000 for the AAAE GA Issues conference which CEA will be hosting July 7-9, and Sept BMW golf tournament $6,000 sponsorship and $5,000 promotional expense.

54255.26 July 4th parade float 1,500 1,921 1,200 54255.27 Chamber events & golf 1,600 1,428 1,600 54255.28 CABAA golf events & sponsorship 4,000 3,605 2,800 52120.08 EAA -Oshkosh 0 4,142 5,000 54270.05 Scholarship-Dollars for Scholars 1,000 1,000 1,000 54270.05 Donations-food pantries - - 54270.05 Other-community events 4,000 3,623 3,000

Other also includes Young Eagles, Puttin on the Ritz, breakfasts, and misc community events.54255.60 NBAA Dispatch Conf-Jan (exhibit) 6,000 4,000 6,000

Total cost-including travel. To be held in New Orleans Jan 14-17, 2014.

U.S. Customs Service 250,000$ 225,939 250,000 0Operating costs to provide inspection service on a break-even basis to CEA users. The service cost is the total cost of providing an agent, which is calculated annually and billed to us quarterly.We receive the annual connectivity fee invoice in November, so the telecom number is an estimate.

56550.01 U.S. Customs service cost 125,000 123,439 125,000 56550.02 U.S. Customs overtime charges 51,000 42,641 51,600 56550.03 Telecom (USCS network, cellphone) 20,000 8,405 20,000 56550.04 Waste removal services 30,000 30,959 30,000 56550.06 Other forms, supplies & services 2,000 205 2,400 56550.07 Collection fees 6,000 5,949 6,000 56550.08 Facilities costs 16,000 14,340 15,000

56600.01 Contingencies - 25,000$ - 25,000 0Account for unanticipated and underestimated department expenditures.

Total Other 340,700$ 266,453$ 338,200$ 2,500$

Total Administration 1,675,540$ 1,537,014$ 1,569,080$ 106,460$

% Change from FY13 6.78%

43

Department of Operations & Maintenance Services

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44

Department of Operations and Maintenance Services Description The Operations and Maintenance Department has a two-fold responsibility. Most importantly, the Department is responsible for assuring the safe operation of the Airport, including the well-being of each Airport neighbor, user, and visitor. This includes establishing safety procedures and providing recommendations for future Airport improvements. The second responsibility is for the repair, replacement and maintenance of all Airport buildings, lights, and signs; and maintenance of equipment, properties and facilities and infrastructure surfaces not leased to another entity. The Department also has oversight responsibility for Airport Operations. FY14 Goals:

1. Ensure the safety and security of the flying public, Airport users, and Airport employees, by ensuring that the airport facilities and support vehicles are properly maintained.

2. Continue to strive for excellence in snow and ice removal by continuing the training of employees, and improving upon the communication of airfield conditions to the flying public.

3. Continue to strengthen working relationships with other governmental agencies, aviation industry associations, community groups, tenants, and local pilot associations.

4. Continue to encourage learning through seminar and program attendance, on-line training courses, college courses, and conferences.

5. Continue to be aggressive with the deterrence of wildlife on the airport through the airport’s wildlife control program.

6. Respond promptly to airport user complaints and tenant relationships.

7. Respond promptly to airport noise complaints.

8. Develop additional performance measures and service indicators.

45

FY13 Goal Results:

1. Respond promptly to noise complaints. Last year, the airport received a smaller amount of noise complaints than the previous year, a total of seven complaints in 2012. This can probably be attributed to the continuing education of the public to how aircraft operate in and out of CEA; flight patterns, winds, and other factors which determine what runway an aircraft uses. Those noise complaints were responded to promptly in every case.

2. Respond promptly to tenant/user concerns. The airport has continued its efforts to invite user and tenant feedback on suggested improvements to airfield facilities and operational procedures.

3. Ensure the safety and security of the airport employees, users and general public. With the continuation of the daily airport inspection program, construction coordination and safety meetings, and operational meetings with the maintenance department and the control tower staff, CEA is able to continue the goal of operating a safe airfield environment for the flying public.

4. Ensure facilities, lighting systems, and support vehicles are properly maintained. CEA continues to focus on the maintenance of service vehicles, including the rehabilitation of the oldest snow removal plow trucks. Lights and guidance signs are inspected and repaired daily.

5. Strive for excellence in snow and ice removal. There were zero airport incidents or accidents related to snow removal activity during the 2012/13 winter season. This is credited to the training and skill of the maintenance and operations crews.

6. Effectively communicate with other governmental agencies, aviation industry associations, community groups, tenants, and local pilot groups. The operations coordinator continues to notify the users of CEA on airfield safety updates, runway/taxiways closures, approaching severe weather, and temporary flight restrictions (TFRs) via email and fax. Information on airfield conditions is also posted on the CEA website.

7. Increase staff training through seminar and program attendance; on-line training courses; local community college courses; and conferences. Maintenance employees continue to complete on-line safety training through the ANTN web-based program. Employees are encouraged to attend safety seminars in the local area.

8. Maintain and improve an active wildlife control program. CEA works closely with the contractor hired to disperse geese and other fowl from the airport property. Maintenance staff is also trained to harass and deter wildlife from the airfield.

46

Key Performance Measures/Service Indicators

Goal: Sustain and Maintain Service Levels

Target FY13

Actual FY12

Type of Measure: Effectiveness

Avoidable accidents & injuries <5 5

# of Aircraft bird strikes 2 3

# of runway incursions 0 2

Type of Measure: Efficiency

# of T-hangars-routine maintenance completed 5 2

Average cost to maintain vehicles per mile $2.00 N/A

Average cost to maintain vehicles per hour $2.00 N/A

Type of Measure: Output

Salt purchase cost per ton $53.38 $58.96

E36 de-icer cost per gallon $4.87 $4.60

Urea de-icer cost per ton $576.29 $690.46

Schedule of Personnel

Position Employee Hire Date Operations Coordinator Kealan Noonan 12/01/11 Lead Maintenance Worker Joseph Wargo 05/29/90 Airport Maintenance Operator Harry Wollscheid 04/05/99 Airport Maintenance Operator Rick Hervas 06/02/04 Airport Maintenance Operator Norman Mackey 12/31/07 Airport Maintenance Operator David Barry 04/13/11 Airport Maintenance Operator Robert Maki 03/12/13

Airport Maintenance Operator Seasonal Open Airport Maintenance Operator Seasonal Open Airport Maintenance Operator Seasonal Open Airport Maintenance Operator Seasonal Open

CHICAGO EXECUTIVE AIRPORTOperations and Maintenance Expense Budget

For the Fiscal Year Ended April 30, 2014

Difference %FY11 FY12 FY13 FY14 FY14 Budget

Actual Actual Budget Budget vs. FY13 Change

Personnel ServicesSalaries $ 282,338 $ 352,760 $ 361,537 $ 370,000 $ 8,463 2.34 %Salaries-Seasonal* 19,701 18,133 19,260 19,620 360 1.87Overtime* 64,582 44,416 63,000 60,000 (3,000) (4.76)Service Award/Recognition 2,140 4,673 4,670 4,920 250 5.35Payroll Taxes 27,663 34,196 36,850 44,400 7,550 20.49Insurance 92,958 114,229 126,000 133,500 7,500 5.95Pension contribution 15,777 17,687 19,500 20,000 500 2.56Training 1,380 3,713 3,400 6,900 3,500 102.94Uniforms 7,880 8,796 8,600 10,000 1,400 16.28

Total Personnel Serv. 514,418 $ 598,604 642,817 669,340 26,523 4.13 %

Services and SuupliesBuilding Repair 250 $ 341 - - - -Building Repair 4,588 15,073 10,000 10,000 - -Conference & Meetings - - 960 860 (100) (10.42)Equipment/Tools 5,823 5,702 10,000 14,000 4,000 40.00Equipment Maint. 2,358 2,177 6,000 6,000 - -Equipment Rental 290 320 1,000 20,000 19,000 1,900.00Fence/Gate Supplies 1,910 1,236 - - - -Fence/Gate Maintenance - 2,116 4,000 3,000 (1,000) (25.00)Fuel* 54,761 27,464 57,000 60,000 3,000 5.26Insurance 59,767 80,610 70,000 61,100 (8,900) (12.71)Landscaping 19,012 16,912 34,500 24,500 (10,000) (28.99)Landscaping Supplies* 3,442 2,646 6,500 10,000 3,500 53.85Lighting Supplies 13,645 24,772 29,000 29,000 - -Signage Supplies 3,917 5,281 6,000 6,000 - -Lighting & Signage 6,842 934 - - - -Membership Dues - 338 310 300 (10) (3.23)Other 1,564 2,221 6,000 4,000 (2,000) (33.33)Other Services 14,124 14,425 19,400 17,250 (2,150) (11.08)Pavement Marking 51,730 22,121 43,000 65,000 22,000 51.16Raw Materials* 99,289 26,815 65,750 70,250 4,500 6.84Sewer Lines 1,060 - 3,000 3,000 - -Sewer Maintenance 4,576 - - - - -Supplies-Misc 36,222 25,230 51,000 48,000 (3,000) (5.88)Telephone 1,594 3,271 4,100 4,600 500 12.20Travel Expense - 1,748 1,500 1,500 - -Vehicle Maint. 66,141 54,265 80,700 80,700 - -Vehicle Maintenance 18,485 12,216 - - - -Waste Removal 12,728 6,815 12,750 12,750 - -Wildlife Control 18,900 25,420 - - - -

Total Services and Supplies 503,016 $ 380,469 522,470 551,810 29,340 5.62 %

OtherContingencies* - - 25,000 25,000 - -

Total Other - - 25,000 25,000 - -

Total Operating Expense 1,017,435 $ 979,073 1,190,287 1,246,150 55,863 4.69 %

47

4/9/2013 48

Operations & Maintenance DepartmentFY14 Budget

Line Item Detail Within Category

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Personnel Services60400.10 Salaries - Full-time 370,000$ 375,785 361,537 8,463

Department salaries (6 maint)Operations Coordinator (1)

60300.05 Salaries - Seasonal 19,620$ 19,000 19,260 360 Four summer positions, 12 weeks for 37.5 hours/week at $10.90/hour = $19,620, plus 1 as needed.

60200.05 Overtime 60,000$ 16,083 63,000 (3,000) Overtime costs as required, mainly for snow removal. Approx fifteen hundred hours are budgeted at a 1½ hourly rate of $37.84. Includes weekend airfield inspections.

Service Awards/Recognition 4,920$ 4,697 4,670 250 Recognition of services provided by seven employees, 2 times per year @ $30/gift cert.

60700.17 Recognition awards 420 420 420 60700.17 Incentive program 2,500 2,527 2,500 60700.20 Service Awards 2,000 1,750 1,750

Pay for 1 employee with twenty or more years of service at $1,000, 1 employee with 10 through14 years of service at $500, and 2 with 5 through 9 years of service at $250.

Payroll taxes - 44,400$ 40,200 36,850 7,550 60500.05 FICA, 6.20%, Medicare, 1.45% 36,000 33,184 35,000 60500.15 Unemployment, 7.15% (was 2.05%) 8,400 7,016 1,850

Insurance - 133,500$ 118,528 126,000 7,500 Premiums for the following employee insurance, provided by the Airport: Wheeling is projecting a 6.4% insurance increase; renewal date is July 1st.Dental

60100.05 Disability (7) 8,500 8,091 8,000 60100.10 Health (7) 125,000 110,437 118,000

60600.05 Retirement Contribution - 20,000$ 9,705 19,500 500 Full time employee Retirement Contributions @ 4.5% of pay.

Operations and Maintenance Department Budget

4/9/2013 49

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Training - 6,900$ 1,423 3,400 3,500 SAE certifications, Harper certifications. ANTN web based training from AAAE.

60800.08 Other - Local 2,000 168 2,000 60800.09 ANTN training system 1,400 1,255 1,400 60800.07 Disaster drill 1,500 60800.11 Education reimbursement 2,000

Uniforms - 10,000$ 9,250 8,600 1,400 Uniform cleaning and replacement for 6 employees at $1055/yr & 4 seasonal employeesat $360 per year, plus $120 boot allowance per FT employee.

60900.03 Safety Equip 500 35 500 60900.05 Uniforms (safety shoes, gloves, caps) 8,500 8,279 7,500 60900.10 Uniforms part-time 1,000 936 600

Total Personnel Services 669,340$ 594,671$ 642,817$ 26,523$

SERVICES AND SUPPLIES

62090.05 Building Repairs and Supplies - 10,000$ 2,972 10,000 - Cost for the repair of Airport buildings and hangars.

Conf and Meeting Registration 860$ 575 960 (100)Registration fees for conferences, seminars, and lunch meetings. IAC is in Moline May 2013.

62120.17 IL Aviatn Conf (Spring) 1 200 - 400 62120.16 CABAA Meetings-monthly 60 - 60 62120.30 AAAE conference 600 575 500

Equipment/Tools - 20,000$ 5,892 16,000 4,000 Equipment purchased that cost less than $2,000, individually (pump, generator, band saw)Purchase of 4 line trimmers at $350 each ($1,400)Purchase of 4 replacement radios at $1,400 each (7,000)

62210.05 Equipment maintenance cost. 6,000 2,916 6,000 64090.05 Communication equipment 8,000 480 4,000 64090.10 Shop equipment 6,000 2,496 6,000

62240.05 Equipment Rental - 20,000$ 660 1,000 19,000 Temporary replacement of non-operative equipment, special equipment and tools. New in FY14, rental ofadditional piece of snow equipment.

Operations and Maintenance Department Budget

4/9/2013 50

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

62270.05 Fence/Gate Supplies & Maint 3,000$ 79 4,000 (1,000) Fencing and gate supplies purchased for repairs by department personnel.

Fuel - 60,000$ 35,934 57,000 3,000 Budget is up due to increased fuel prices.

64150.05 Diesel 47,000 24,883 45,000 64150.10 Unleaded gasoline 13,000 11,051 12,000

Insurance - 61,100$ 63,980 70,000 (8,900) Department vehicle and workers compensation insurance. NationAir is the Airport's insurance broker, whose fixed fee contract runs through Dec 2014.

62300.05 Vehicles 10,500 10,111 10,000 62300.30 Workers compensation 44,600 47,869 54,000 62300.09 Broker fee 6,000 6,000 6,000

Landscaping Service & Supplies 34,500$ 32,670 41,000 (6,500) Application of growth inhibitor, tree trimming and perimeter landscape services. Purchase of flowers,fertilizer, grass seed, holiday decorations.

62330.05 Growth inhibitor, weed control 5,000 3,183 15,000 62330.07 Landscaping-Other 500 612 500 62330.10 Tree trimming/removal 2,000 - 2,000 62330.11 Perimeter landscaping services 17,000 16,600 17,000 64210.05 Landscaping materials 10,000 12,275 6,500

64240.05 Lighting Service & Supplies 29,000$ 25,866 29,000 - Maintenance of and supplies for the Airport lighting system (runways, taxiways & street lights).

Membership Dues - 300$ 275 310 (10) Membership dues for Operations Coordinator position.

62450.05 AAAE (1) 300 275 275 62450.39 Women in Aviation - 35

Operations and Maintenance Department Budget

4/9/2013 51

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Other Services - 17,250$ 14,585 19,400 (2,150) Costs for other contractual services not specifically listed in this category.

62420.15 Medical Exams plus annual 1,400 1,150 1,000 hearing and vision exams. -

62510.05 Other-Permits, stormwater, MWRD 1,500 767 1,500 62540.05 Vehicle Towing-tenants 200 80 500 62540.21 Other-Backflow Inspections (7) 3,000 2,555 3,000

Hgr 50 (520) Hgr 51 (733) TH 52 (190) TH 54 (190) TH56 (190) sprinkler (300) admin (300)62540.22 Fuel Tank inspection 800 755 800 62540.25 Monitor-Light Vault ($175/qtr ADT) 700 670 700 62540.25 Alarm line-Light Vault ($90/mth ATT) 1,150 1,057 900 62540.26 Monitoring-SW Ts-Alarm line 3,500 3,551 3,000

(ATT 2,500) FSS (700) permits/misc (300)62540.31 Snow plowing & hauling 5,000 4,000 8,000

Other - 4,000$ 854 6,000 (2,000) Costs not defined by another account plus US flags, windsocks, construction safety flags.

64270.10 Other 3,000 551 5,000 64270.05 Staff meals during snowplowing 1,000 303 1,000

62570.10 Pavement Marking - 65,000$ 54,600 43,000 22,000 Annual pavement marking costs-FY14= runway 16/34 markings, centerline, and edgeline.

Materials - 70,250$ 73,941 65,750 4,500 Materials used for Airport operations are as follows:

64330.05 Asphalt 1,500 - 1,500 64330.10 E36 - liquid runway/taxiway deicer 35,000 46,629 30,000 64330.15 Salt 2,000 5,869 2,000 64330.20 Stone 500 - 500 64330.25 Propane 1,000 737 1,500 64330.27 Urea-solid runway deicer 30,000 20,461 30,000 64330.30 Welding 250 245 250

64360.00 Sewer Maintenance & Supplies 3,000$ - 3,000 - Rodding, pipe, and supplies for minor repairs.

Operations and Maintenance Department Budget

4/9/2013 52

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

64390.05 Signage Supplies 6,000$ 6,829 6,000 - Safety, information, airfield guidance signs and replacement of damaged signs.

Supplies-Misc 19,000$ 14,620 23,500 (4,500) 64480.05 Aircraft tiedown 500 - 500 64480.10 Environmental spill control 1,500 - 3,000 64480.15 Shop supplies 15,000 13,621 15,000 64480.20 Visual aids-taxiway markers 1,000 - 2,000 64480.30 NE T Supplies (fire ext, locks, keys) 1,000 999 3,000

Telephone 4,600$ 4,610 4,100 500 62720.05 Cellular-Sprint (2 + puck) 2,800 2,750 2,80062720.10 Telephone (warehouse) 1,800 1,860 1,300

62750.04 Travel Expenses 1,500$ 950 1,500 - Travel costs (commercial transportation, $500; hotel, $130/night; per diem, $50AAAE Conference TBD

Vehicle Maintenance - 80,700$ 40,237 80,700 - Cost for vehicle supplies for department vehicles.

64510.05 General supplies 9,000 5,101 10,000 64510.03 Airport #3, 2011 Chevy pickup 800 131 800 64510.04 Airport #4, 2005 Expedition (Ops) 1,000 - 1,000 64510.07 Airport #5, 2006 F-350 Pickup 1,300 297 1,300 64510.06 Airport #6, 1995 Chevy Pickup 1,300 524 1,300 64510.08 Airport #8, 2003 Chevy Pickup 1,300 144 1,300 64510.09 Airport #9, 1999 Chevy Pickup w/box 1,500 2,728 1,500 62780.10 Airport #10, 2008 Bobcat 500 - 500 64510.11 Airport #11, 1990 Snow blower 4,500 3,105 4,500 64510.12 Airport #12, Plow with Spreader 3,500 1,728 3,500 64510.13 Airport #35, 2004 Yale forklift 1,000 2,645 64510.14 Airport #14, Plow with Sprayer 2,000 860 2,000 64510.15 Airport #15, Case Front-end Loader 2,000 33 2,000 64510.16 Airport #16, JCB backhoe w/loader 2,000 - 2,000 64510.17 Airport #17, 1997 Oshkosh Broom 13,000 6,177 13,000 64510.18 Airport #18, 2003 Oshkosh Broom 11,000 5,155 11,000 64510.19 Airport #19, 2007 Oshkosh Broom 11,000 4,601 11,000 64510.21 Airport #21, Tractor (new in FY13) 1,500 1,011 1,500 64510.22 Airport #22, Deere mower (FY13) 1,500 2,053 1,500 64510.23 Airport #23, Deere mower (FY13) 1,500 1,696 1,500 64510.25 Airport #25 Mower (new in FY13) 1,500 1,129 1,500 64510.33 Airport #33, 2003 Dump Truck 5,000 312 5,000 64510.36 Airport #36, Tenant sweeper 500 92 500 64510.28 Bobcat Mowers 2,000 715 2,000 64510.40 Terrain King mower 500 - 500

Operations and Maintenance Department Budget

4/9/2013 53

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Waste Removal - 12,750$ 7,738 12,750 - Waste removal costs for Airport debris, used oil, solvents, and Port-O-Let rentals.

62810.05 Debris from airfield 10,000 5,971 10,000 62810.10 Oil & Other Removal 2,500 1,767 2,500 62810.15 Waste Removal-Regulatory (solvent) 250 - 250

64480.25 Wildlife Control - 29,000$ 28,000 27,500 1,500 Wild Goose Chase bird control contract, bird bangers, misc supplies.

Total Services and Supplies 551,810$ 415,867$ 522,470$ 29,340$

Other66600.01 Contingencies - 25,000$ - 25,000 -

Account for unanticipated and underestimated department expenditures. 25,000

Total Operations 1,246,150$ 1,010,538$ 1,190,287$ 55,863$

% Change from FY13 Budget 4.69%

54

Non-Operating Budget

Interest Income

Other Expense

Debt Service

4/9/2013 55

Other Income and ExpensesFY14 Budget

Line Item Detail within Category

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Interest Income90100.01 Checking Account Interest 5,400$ 5,000 4,300 1,100

The Airport now receives an interest rate of .45 on its checking accounts at Northbrook Bank.

90100.02 Certificates of Deposit Interest 1,625 550 - 1,625 2 year CD with Wheaton Bank & Trust-matures 12/20/14

90100.03 Illinois Funds Interest 25$ 30 4 21 A minimal balance is kept in this account due to the poor returns, but it is necessary for theautomatic deposits of IL State grants.

90100.04 Money Market Interest 600$ 3,700 9,000 (8,400) Account at MB Financial. Funds from the prior Mt. Prospect accounts were used to buy the CD and fund IMET

90100.06 IMET Interest 1,800$ 500 - 1,800 Illinois Metropolitan Investment Pool

Total Interest Income 9,450$ 9,780$ 13,304$ (5,654)$

% Change from FY13 -28.97%

Other Income and Expenses

91050.03 Bank Fees 3,900 3,850$ 3,700 200 Fees to maintain the Northbrook checking account and Popular loan account.

93000.xx Other (Income) and Expenses (1,000) (12,689)$ - (1,000) Misc income, expenses, plus gain/loss on sale of assets.

Total Other Income and Expense 2,900$ (8,839)$ 3,700$ (800)$

% Change from FY13 -21.62%

Other Income and Expenses

4/9/2013 56

Projected FY13 BudgetFY14 Budget FY13 Actual Budget Change

Debt ServiceLoan/Note Interest 194,705$ 207,530 210,221 (15,516) Interest on three bank loans/notes.

91000.03 Banco Popular-SW T-Hgrs 38,035 40,352 40,351 91000.04 Northbrook Bk #1-NE T-Hgrs 86,800 90,635 92,250 91000.05 Northbrook Bk #3-RSA Land 69,870 76,543 77,620

Loan/Note Principal 304,248$ 301,931 301,931 2,317 Principal on three bank loans/notes.

91010.03 Banco Popular-SW T-Hgrs * 52,236 49,919 49,919 91010.04 Northbrook Bk #1-NE T-Hgrs + 92,004 92,004 92,004 91010.05 Northbrook Bk #3-RSA Land ^ 160,008 160,008 160,008

* Fixed monthly payment-principal and interest varies.+ Fixed monthly principal payments of $7,667.^ Fixed monthly principal payments of $13,334.

Total Prinicpal and Interest 498,953$ Banco Popular-SW T-Hgrs 90,271 Northbrook Bk #1-NE T-Hgrs 178,804 Northbrook Bk #3-RSA Land 229,878

Loan/Note Balances as of 4/30/13 4,732,207$ MaturityBanco Popular-SW T-Hgrs 859,665 Nov 2025Northbrook Bk #1-NE T-Hgrs 2,123,659 May 2020Northbrook Bk #3-RSA Land 1,748,883 May 2020

Total Debt Service 498,953$ 509,461$ 512,152$ (13,199)$

% Change from FY13 -2.58%

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57

Capital Budget

Sewer Reserve Fund

Capital Equipment Reserve Fund

1991 Idaho Norland Snow Blower that was rehabbed in 2012

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58

Capital Projects Budget Impact on Operating Budget The capital projects development process begins in the previous summer with the compilation of a multi-year Transportation Improvement Program (TIPs) submission to the State of Illinois Department of Transportation, Division of Aeronautics (IDOT). Before submission in January, the plan is submitted and approved by the Chicago Executive Board of Directors. This document covers all projects for which the Airport is requesting federal and/or state grants to supplement funding of the total project cost. The capital contributions, provided by the state and federal governments, range from 75% to 95% of the total project cost. Submitted projects are categorized by IDOT using the state and Federal Aviation Administration’s priority guidelines. With limited funds available from both agencies, not all projects are considered and some are deferred to subsequent years for consideration. The results are that many of the projects requested for the coming fiscal year are not immediately funded. The FAA has changed its contribution formula from 95% to 90%, and, although the State of Illinois has expanded its funding participation from 2.5% to 5%, the Airport’s local share cost for these projects has doubled from 2.5% to 5%. This has had a major impact on the projects that Chicago Executive can support. For example, the local share of the $5.8 million EMAS project is approximately $300,000 instead of $150,000. In addition to the TIPs capital projects submission, the Airport develops additional capital project requests that are paid for using only Airport funds. Only certain types of projects qualify for federal and state grants. Following are explanations of the various capital budget categories. Each category lists the Airport’s local share plus has a column indicating the entire cost of the project. Capital Budget Summary: A format change from prior years’ budget now includes listing potential grant revenue as separate line items for easier tracking rather than netting the proceeds against the various projects. We are not certain when these revenues will be received. Capital Projects-Internally Funded: The budget category for Facilities is $55,000, which covers three specific projects. The first project is recabling of the taxiway Bravo lights. Runway electric energy usage is up, and staff believes that power leakage in the taxiway cables is responsible for the increased energy use. The cables will be dug up and repaired as soon as weather permits. The second project is to repaint the electric vault building roof, budgeted at $8,000. The third item, for $12,000, is a 10% repair allowance for hangar 11, and the last item is $25,000 for various non-specific building repairs. The Fencing, Gates, and Landscaping category is budgeted for $30,000. The $10,000 for fencing is as needed, plus an additional $20,000 is planned on landscaping and a new gate by hangars 5&6.

59

In the Pavement & Sewer category, the major project budgeted is $150,000 for routine pavement and minor sewer system repairs. The second item is a reimbursement to Atlantic Aviation for the construction of an access road from the existing hangar 41 to newly constructed hangar 42, as the Airport was unable to obtain State funding for the project. The Office Equipment category contains $32,000 for a new network server and replacement staff workstations. In the Vehicle category, we are budgeting $50,000 to refurbishing at least one piece of snow equipment to extend its useful life, replacing a dump truck for an estimated $52,000 and pickup truck for $32,000, and replacing two walk behind mowers at $3,000 each. New items in FY14 are a tow-behind magnetic sweeper ($7,000) to pick up metal, wire, and debris on the airport grounds, a ramp plow blade ($16,000) for the piece of snow equipment that will be leased for the winter, and a paint sprayer vehicle ($7,000) to reduce the cost of airfield repainting in the future. Shop equipment only has one item budgeted, $10,000 for a portable generator/light plant. Lastly, the Other category contains $35,000, of which $20,000 is budgeted for redesign of the Airport’s website. The $15,000 is for a property purchase that is directly offset by a $15,000 access fee that is shown in the revenue budget. Capital “A” Projects: This information has been taken from the 1/10/13 Final Submittal of the Transportation Improvement Program: Airports FFY2014-2018. New in this year’s Grant “A” budget are Estimated FY14 Revenues. Some of the projects require the State to pay the Airport and then we, in turn, pay the contractor, whereas, previously the State paid the contractors directly. We will show these payments received as grant revenue. Although the Airport’s final cost should be 5% of the total project cost, some of revenues listed for the projects are short of offsetting 95% of the cost. We cannot be certain that, for each listed project, the revenues will all be received in FY14, so we have reduced our estimated grant revenue budget. Another issue with grant revenue is that the FAA directed the State to implement a 10% funds holdback program as an incentive to encourage timely submittal of project closeout paperwork. The holdback funds are supposed to be released upon finalization of the project, which will delay receipt of the Airport’s reimbursement funds, and most likely will not be in FY14. The largest project in the FY14 budget is the estimated $5.8 million for construction of the EMAS bed on the Palatine Road end of the main 16/34 runway. EMAS stands for Engineered Material Arresting System, which is basically replaceable, crushable concrete blocks placed in a bed at the end of the runway. The EMAS bed will prevent an aircraft from overshooting the end of the runway in case of a mishap, with minimal damage to the plane.

60

The Rehab Runway 34 Hold Apron project will start in the late spring of 2013 and should be completed by the end of the summer. The asphalt pad is being replaced by longer-lasting concrete. This project has been funded. The last major project is the Rehab East Quadrant General Aviation Apron. All of the asphalt has failed and in need of immediate repair, plus the apron has three grass circles that now impede the movement of the larger aircraft. The apron will be completely replaced, provided the project is funded. Pending is the design work for Developing the East Quadrant General Aviation Apron, near the corner of Tower Road and Milwaukee Avenue. Again, this project is waiting on funding. Capital “B” Projects: As there is little possibility of these projects being funded, they are not included in the budget numbers. Capital “C” Projects: This is a new category in the Airport’s budget document. It lists the projects that have been previously paid for by the Airport that we have requested reimbursement from the FAA. As we don’t have information if and when the reimbursements will be forthcoming, the amounts are not included as revenue in the budget numbers

61

Capital Summary ProjectedDoes not include Sewer or CERF FY14 FY13 FY13

Budget Actual BudgetRevenue

Grant-GA Entitlement (applied to NE T loan) (148,500) Grant-Lima Project (8,000) Grant-Echo Project (143,779) Grant-EMAS blocks (3,728,750) Grant-Runway 34 Hold Pad (70,000) (66,148) Grant-Rehab East Quad GA Apron (HFC) (135,000) Grant-Develop East Quad GA Apron (50,000) Total (4,132,250) (217,927) 0

Capital Improvements Building replacement/repair 55,000 12,625 13,000 Fence/Gate repair 30,000 3,765 10,000 Pavement Repair 190,926 180,330 180,000 Total 275,926 196,720 203,000

Capital Outlay Office Equipment 32,000 10,000 Vehicles 174,000 239,000 243,000 Shop Equipment 10,000 5,612 11,000 Other 35,000 2,985 8,000 Total 251,000 247,597 272,000

"A" Projects Overlay and Extend Taxiway Echo-Construct 10,000 130,655 15,000 Property RSA Acquisition-Montessori School 13,365 12,200 Relocate Beacon to ADS-B Tower 12,120 2,750 EMAS-Design Engineering Reviews 30,000 25,000 25,000 EMAS-Design Engineering 169,827 350,973 210,000 EMAS-Blocks/Construction/Phase Services 4,063,960 325,000 Rehab 34 Hold Apron 108,317 128,689 144,500 Rehab East Quad GA Apron (HFC) 223,000 10,000 Develop East Quad GA Apron 62,500 37,500 Taxiway Lima-final 984 NW Entrance Rd-Design Engineering 45,000 Property Acquisition 12,841 200,000 FAA Airspace Study 2,554 Signage Master Plan 4,234 Sovereign CLOMR 7,937 Total 4,693,089 663,867 1,026,950

OtherDebt Service-from GA entitlement grant 148,500 Total 148,500 0 0

Total 1,236,265 890,258 1,501,950

Capital Projects Proposed Budget

4/9/2013 62

Capital Projects-Internally FundedFY14 Budget

Line Item Detail within Category

FY14 BudgetCAPITAL IMPROVEMENTS

72000.01 Facilities 55,000$ Capital Improvements budgeted for Airport facilities are as follows:Taxiway Bravo electrical recabling (10,000)Repaint electrical vault roof (8,000)IPO Indeck lease agreement (12,000) 10% credit for repairsMisc building repairs (25,000)

72100.01 Fencing, Gates, Landscaping - 30,000$ Repair/improvement of fencing and gates. (10,000)Hangar 5&6 gate & landscaping (20,000)

72200.01 Pavement & Sewer - 190,926$ Pavement replacement, crack sealing and sewer repair.Airfield pavement & sewer (150,000)Atlantic access road reimbursement (6,821 per month x 6mths) (40,926)

Total Capital Improvements 275,926$

CAPITAL CONSTRUCTION

73000.01 Building renovation 0

Total Capital Construction 0

Capital Projects Proposed Budget

4/9/2013 63

FY14 BudgetCAPITAL OUTLAY

74000.01 Office Equipment - 32,000$ Purchase of additional computer/office equipment.Replacement server w installation (12,000)PC replacement of 10 work stations (20,000)

74100.01 Vehicles- 174,000$ Bobcat Track Loader-Replacement Program (4,000)Refurbish snow equipment-AP17 + ? (50,000)Dump truck includes radios-replace 2003 AP33 (52,000)Pickup truck includes radios-replace 1995 AP6 (32,000)Bobcat Walk Behind Mowers-2 (3,000 each)TowBehind Magnetic Sweeper (7,000)Ramp plow blade for leased vehicle (16,000)Paint sprayer vehicle includes radios (7,000)

Shop Equipment 10,000 74200.01 Portable generator/light plant (10,000)

Other 35,000$ 74300.01 Website redesign (20,000)

Agreement pending (15,000):for a property purchase, which is offset by the $15,000 annual access fee revenue until the purchase price is paid off.

Total Capital Outlay 251,000$

Grand Total-Internally Funded 526,926$

Grant Service "A" Projects

4/9/2013 64

"A" ProjectsFY14 Budget

Grant ServiceThe "A", "B" and "C" projects listed are taken directly from the IL Dept of Transportation, Divisionof Aeronautics, Transportation Improvement Program: Airports FFY2014-2018, Final Submittal 1/10/13. The Airport Board of Directors approved the plan with Resolution 13-005 on January 10, 2013. Only projects that have been requested through FFY2014 are listed. Federal Fiscal Year (FFY) 2014 runs fromOct 1, 2013 to Sept 30, 2014.

Est FY14 Local Total ProjectRevenue Share Cost

Overlay & Extend Taxiway Echo-Construction - 10,000 2,454,974 PWK-3244 Project started in FY12. Extension of Taxiway Echo andOverlay of Taxiways Echo and Bravo. This project is waiting onthe State to finish the paperwork. The current balance owed is $131,but is subject to change until we receive the "Final" invoice.Approved on resolution 11-041.

Property RSA Acquisition-Montessori School - 13,365 267,305 Acquisition of a portion of Runway 6 End RSA. Total reimbursement and local share for this project are $267,305 and $13,365 respectively.This property will not be purchased unless there is FAA funding.Approved on Resolution 11-032.

Relocate BeaconPWK-4287 Relocate Beacon from ATCT to ADS-B Tower. Total cost and local share are $60,000and $3,000 respectively. Current funding is federal 90%, state 5%, local 5%.From TIPs FFY2014-2018

a) Relocate Beacon-Engineering - 9,600 9,600 Agreement with CM&T to engineer Beacon move. No Board resolution. Final local share is estimatedto be $480 after reimbursement from the State.

b) Relocate Beacon-construction - 2,520 50,400 Waiting for the Participation Agreement from the State.

Subtotal Relocate Beacon Project: - 12,120 60,000

Grant Service "A" Projects

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Est FY14 Local Total ProjectRevenue Share Cost

EMAS (Engineered Material Arresting System)Design of EMAS beds on both ends of Runway 16/34 plus planned construction of departureend 34 bed (Palatine Rd). Current funding program is federal 90%, state 5%, local 5%.Total project is $5,800,000 and local share is $290,000, not including FAA Design Review.

a) EMAS-FAA Design Engineering Reviews-additional funding - 30,000 30,000 FAA required review of the EMAS engineering. Estimated cost-wewill be charged for the actual time spent, any unspent funds willbe returned. Total estimated cost $52,775, $25,000 paid in FY13.This is 95% reimbursable from AIP funds.

b) Rnwy 16/34 EMAS-Design Departure end 16 (Hintz Rd) - 113,742 272,700 Agreement with CM&T for ESCO to design both EMAS beds on Runway 16/34. Includes $105,000 for ESCO (total $210,000 for both)Final local share is $13,635 after State reimbursement.Approved on resolution 11-051

c) Rnwy 16/34 EMAS-Design Departure end 34 (Palatine Rd) - 56,085 248,100 Agreement with CM&T for ESCO to design both EMAS beds on Runway 16/34. Includes $105,000 for ESCO (total $210,000 for both)Final local share is $12,405 after State reimbursement.Approved on resolution 11-052

d) Rnwy 16/34 EMAS 34 End (Palatine Rd)-construction phase service - 75,000 75,000 Construction oversight for the EMAS bed and block installation.Final local share is estimated to be $3,750 after reimbursementfrom the State.

e) EMAS bed and block installation-Contract 1 (Palatine Rd) - 63,960 1,279,200 Final local share is estimated to be $63,960 after reimbursementfrom the State.

f) EMAS blocks (Palatine Rd) 3,728,750 3,925,000 3,925,000 Purchase of EMAS blocks from ESCO, to be reimbursed by theState. Final local share is estimated to be $196,250 afterreimbursement from the State.

Subtotal EMAS Project 3,728,750 4,263,787 5,830,000

Grant Service "A" Projects

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Est FY14 Local Total ProjectRevenue Share Cost

Rehab Rwy 34 Hold ApronPWK-4181 Rehabilitate Runway 34 Hold Pad. Total funding approved is $1,048,600 and local shareis $52,000. Current funding program is federal 90%, state 5%, local 5%.

a) Rehab Rwy 34 Hold Apron-Design - 7,717 89,500 Design engineering for the rehabilitation of the Runway 34 Hold Pad.Approved on resolution 12-003. Final local share is estimatedto be $4,475 after reimbursement from the State.

b) Rehab Rwy 34 Hold Apron-construction phase services 70,000 85,600 85,600 Construction oversight for the rehab of the Runway 34 Hold Pad.Approved on resolution 12-027. Final local share is estimated to be $4,280 after State reimbursement. Grant revenue est = $70,000.

c) Rehab Rwy 34 Hold Apron-construction/local share - 15,000 873,500 The local share was approved on Resolution 12-031 and paid inMarch 2013. The $15,000 is a contingency.

Subtotal Rehab Rwy 34 Hold Apron 70,000 108,317 1,048,600

Rehab East Quadrant GA ApronPWK-4262 Rehabilitate HFC apron and land acquisition reimbursement. Total cost and local shareare $1,090,000 and $54,500, respectively. Expected funding is federal 90%, state 5%, local 5%.

a) Rehab East Quadrant GA Apron-design 55,000 68,000 68,000 CMT contract to design the rehab of East Quadrant GA Apron (HFC)Approved on resolution 12-046. Final local share is estimatedto be $3,400 after State reimbursement. Grant revenue est = $55,000

b) Rehab East Quadrant GA Apron-construction phase services (est) 80,000 95,000 95,000 Construction oversight for the rehab of the HFC taxiway by CMT.No Board resolution yet. Final local share is estimated to be $4,750after State reimbursement. Grant revenue est = $80,000

c) Rehab East Quadrant GA Apron-construction/local share (est) - 60,000 927,000 No Board resolution yet. Final local share is estimated to be $46,350.We have added an additional $14,000 as a contingency.From TIPs FFY2014-2018

Subtotal Rehab East Quadrant GA Apron 135,000 223,000 1,090,000

Grant Service "A" Projects

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Est FY14 Local Total ProjectRevenue Share Cost

Develop East Quadrant GA ApronDevelopment of the East Quadrant GA Apron & sitework. Total cost and local share for this projectare $910,000 and $227,500. Current funding program is federal 0%, state 75%, and local 25%.From TIPs FFY2014-2018

a) Develop East Quadrant GA Apron-design 50,000 62,500 62,500 CMT contract to design the development of the East Quad GA Apron.Approved on resolution 12-045. Final local share is estimated tobe $3,125. Grant revenue est = 50,000

Subtotal Develop East Quadrant GA Apron 50,000 62,500 62,500

Total Grant Service "A" projects 3,983,750 4,693,089 10,813,379

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"B" ProjectsFY14 Budget

The following grant-supported projects, while important to the development of the Airport, are not expected to be funded during the fiscal year due to the funding level being provided by the FAA & IDOTfor other projects carrying higher funding priorities. There is a high probability these amounts will notbe required, so they are not included in our FY14 budget funding requirements.

Total ProjectLocal Share Cost

b) Develop East Quad GA Apron-construction phase services (est) 79,000 79,000 Construction oversight for the East Quad Apron development by CMT.No Board resolution yet. Final local share is estimated to be $3,950after reimbursement from the State.

c) Develop East Quadrant GA Apron-construction/local share (est) 200,000 768,500 Development of the East Quadrant GA Apron & sitework.No Board resolution yet.

16/34 RSA/OFA-Contract 2 375,000 7,500,000 PWK 4182 16/34 RSA/OFA safety grading and clearing, EMAS 16 endTotal cost and local share is $7,500,000 and $375,000, respectively.Current funding program is federal 90%, state 5%, local 5%.

Rnwy 16/34 RSA/OFA-Contract 2a; Twy L1 (Bypass) 35,000 700,000 Runway 16/34 RSA/OFA safety grading and clearing, constructtaxiway Lima 1 (bypass).Total cost and local share is $700,000 and $35,000, respectively.Current funding program is federal 90%, state 5%, local 5%.

RSA Acquisition-Phase 3B 196,227 3,924,541 Land purchased south of Palatine Rd in 2006 at a cost of $10.5 million for aRunway Safety Area (RSA). Current funding program is federal 90%, state 5%, local 5%.Total cost and local share is $3,924,541 and $196,227, respectively.Any funds received will be applied to the outstanding loan first.

RSA Acquisition-Phase 3-Clearing and Fencing 20,000 400,000 To clean, grade, seed and fence RSA property south of Palatine Rd.Current funding program is federal 90%, state 5%, local 5%.Total cost and local share is $400,000 and $20,000, respectively.

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"B" ProjectsFY14 Budget

Total ProjectLocal Share Cost

EA for Land Acquisition 25,000 500,000 Environmental Assessment for Land Acquisition per ALP/Master Plan.Total cost and local share for this project is $500,000 and $25,000. Current funding program is federal 90%, state 5%, local 5%.

Rehabilitate Runway 16/34 275,000 5,500,000 Rehabilitate Runway 16/34-estimate.Total cost and local share is $5,500,000 and $275,000, respectively.Current funding program is federal 90%, state 5%, local 5%.

Overlay East Access Road 22,500 225,000 Overlay East Quadrant Access Road (Tower Rd)Current funding program is federal 0%, state 90%, local 10%.Total cost and local share for this project is $225,000 and $22,500.

Develop NW Quad GA Apron-Phase 1 312,500 1,250,000 Sitework for northwest quad GA apron (phase 1) .Total cost and local share is $1,250,000 and $312,500, respectively.Current funding program is federal 0%, state 75%, local 25%.

SE Quad Apron-Phase 1 1,116,409 2,233,643 Reconstruct and develop of southeast quadrant apron including EAreimbursement. Alternative financing option.Current funding program is federal 48.7%, state 1.3%, local 50%.Total cost and local share for this project is $2,233,643 and $1,116,409.

Rehab Hangar 9 Apron 42,500 850,000 Rehabilitate Hangar 9 ApronCurrent funding program is federal 90%, state 5%, local 5%.Total cost and local share for this project is $850,000 and $42,500.

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"B" ProjectsFY14 Budget

Total ProjectLocal Share Cost

Acquire Avigation Easements-Phase 3 100,000 2,000,000 Acquire Avigation Easements-All Runway Approach Zones-phase 3.Total cost and local share for this project is $2,000,000 and $100,000. Current funding program is federal 90%, state 5%, local 5%.

Acquire 94th Aero Squadron 60,000 1,200,000 Acquire 94th Aero Squadron including demolition and site restotation.Current funding program is federal 90%, state 5%, local 5%.

East Quad Apron-Phase 3 128,500 2,570,000 Construct east quadrant GA apron-phase 3Current funding program is federal 90%, state 5%, local 5%.Total cost and local share for this project is $2,570,000 and $128,500.

SW Quadrant Apron 137,500 550,000 SW quadrant apron construction.Current funding program is federal 0%, state 75%, local 25%.Total cost and local share for this project is $550,000 and $137,500.

Total Grant Service "B" projects-not included in proposed budget 3,125,136$ 30,250,684$

Grant Service "C" Projects

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"C" ProjectsFY14 Budget

Project ReimbursementsProjects already paid for by the Airport that we have requested reimbursement from the FAA.Although these items have been submitted, we do not have information that reimbursement isforthcoming, therefore, the potential revenue and local share cost are not included in thebudget numbers. This is informational only.

Local PossibleShare Cost Revenue

Water Line Relocation Reimbursement 6,250 125,000 Water line moved for taxiway expansion. Total request is $125,000.Current funding program is federal 90%, state 5%, local 5%.

ALP Reimbursement- 8,000 160,000 Airport Layout Plan reimbursement. Total request is $160,000, local share is $8,000.Current funding program is federal 90%, state 5%, local 5%.

Total Reimbursement "C" projects (not included in proposed budget) 14,250$ 285,000$

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Reserve Funds Sewer Reserve Sub-Fund A Sewer Reserve sub-fund was established by the Airport Board in FY12 to allow for the future repair and maintenance of both the sanitary sewer and stormwater systems without the issuance of debt. We anticipate a $15,000 outlay as the final payment against the Hangar 43 sewer line extension, which had a cost of $30,000. To reduce future costs, the sanitary sewer line was extended during the construction of Hangar 42 in 2012, in anticipation of the eventual construction of Hangar 43 in the same area. There are no proposed plans for a Hangar 43 at this time. Sewer and stormwater related revenues are deposited directly into the Sewer Reserve Sub-Fund, starting in FY14. In FY12 and FY13, sewer and stormwater revenues were received into the operating fund and transferred into the Sewer Reserve Sub-Fund. Capital Equipment Replacement Sub-Fund The Capital Equipment Replacement Sub-Fund (CERF) was formally established by the Airport Board of Directors in FY13. The budget contains $250,000 for a transfer from the operating fund into the CERF. In order to avoid the issuance of debt, this sub-fund is used to set aside money, for not only capital equipment, but for the future construction, improvement, and repair of Airport buildings as well. As the six major Airport pieces of snow removal equipment age, they are being refurbished to extend their useful life, hopefully by 10 or more years. However, they cannot last indefinitely. The estimated cost of replacing the three snow brooms is $700,000 each, the snow blower is $300,000, and the two snow plows/sprayer/spreaders are $250,000 each, which totals $2,900,000. The plan is to have sufficient capital equipment reserves in place to cover the future replacement of these vehicles. We are projecting that there will be sufficient monies available in the fund in FY15 to start purchasing vehicles out of the fund, assuming sufficient annual transfers continue to be made into the fund. Unfortunately, there aren’t sufficient reserve funds planned yet to replace/improve/repair the Airport’s office building, maintenance facility, and nine owned hangars. The Airport has contracted with a consultant to identify additional sources of revenue and possible cost savings to generate an improvement to the bottom line.

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Sewer Reserve FundFY14 Budget

Projected Budget BudgetFY14 Budget FY13 Actual FY13 Change

Revenues:80100.01 Sewer/Stormwater Annual Fees 19,572$ 6,691 16,891 2,681

Fees for annual sanitary maintenance or stormwater assessement fees. All the rates are subjectto an annual CPI increase. Square Foot rates vary by service type and location on the Airport. Hangar 19-sanitary sewer maint fee 614 605 1,200 Hangar 19-stormwater fee 603 594 Hangar 16-sanitary sewer maint fee 451 444 707 Hangar 16-stormwater fee 278 274 IPO-sanitary sewer maint fee 400 400 Hangar 7-sanitary sewer maint fee 400 167 Hangar 4-sanitary sewer maint fee 400 167 Motel 1,965 WM-various Sumac-san sewer maint 2,320 2,286 2,264 WM-200 Sumac-san sewer maint 278 274 274 Hgr 20-sanitary sewer maint fee 377 372 376 Hgr 20-annual stormwater fee 1,125 1,108 1,122 Hgr 18-sanitary sewer maint fee 451 Hgr 18-annual stormwater fee 1,361 Sovereign-sanitary sewer maint fee 2,266 2,246 Sovereign-annual stormwater fee 6,834 6,737 Annual stormwater-pending agrmt 1,414

80100.02 Sewer/Storm One-Time Fees 248,305$ 0 180,372 67,933 Fees for one-time connection or stormwater assessement fees. All the rates are subject toan annual CPI increase. Square Foot rates vary by service type and location on the Airport. Hgr 18-sanitary sewer-connection 9,188 Hgr 18-stormwater assessment 27,331 Hawthorne-san sewer-connection 46,141 45,392 Hawthorne-stormwater assessment 137,255 134,980 One-time-pending agreement 28,390

80100.30 Interest 500$ 690 500$ - Interest earned on money market funds

Total revenue 268,377$ 7,381$ 197,763$ 70,614$

Proposed Sewer Reserve Fund (con't)

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Projected Budget BudgetFY14 Budget FY13 Actual FY13 Change

Capital Outlay:

82500.01 Hangar 43 Sewer Construction (15,000) (15,000) (10,000)$ (5,000) Reimbursement to Atlantic Aviation for sewer line extension @$2,500 per month for one year,starting with hangar occupancy, which was November 2012. FY14 estimated cost is $15,000,Total reimbursement not to exceed $30,000.

82500.02 Admin office sewer repair (10,000) - -$ (10,000)

Total expenses: (25,000)$ (15,000)$ (10,000)$ (15,000)$

Net Income: 243,377$ (7,619)$ 187,763$ 55,614$

Balance of Reserves:FY13 Beginning balance: 121,972FY13 Expected actual (7,619) FY14 Budget 243,377 FY14 Projected ending balance: 357,730

Balance forward 72,205.00FY12 transfers in 48,868.71

FY12 interest 898.00 FY12 ending balance 121,971.71

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Capital Equipment Reserve FundFY14 Budget

This fund was established in FY13 to provide money for the future purchase of vehicles andequipment; plus facilities repair and construction, including new administration andmaintenance buildings.

Projected Budget BudgetFY14 Budget FY13 Actual FY13 Change

Revenues:

85100.30 Interest 1,000$ 125 -$ 1,000 Interest earned on money market funds

85100.01 Transfers In: 250,000$ 250,000 250,000$ -

Total revenue 251,000$ 250,125$ 250,000$ 1,000$

Capital Outlay:

None 0 0 0 0

Total expenses: 0 0 0 0

Net Income: 251,000 250,125 250,000

Balance of Reserves:FY13 Beginning balance: 0FY13 Expected actual 250,125 FY14 Budget 251,000 FY14 Projected ending balance: 501,125

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Supplemental Information Section

Float in the Prospect Heights 4th of July Parade

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Profiles

Chicago Executive Airport Chicago Executive Airport is located 18 miles northwest of Chicago, Illinois. The Airport is owned by the City of Prospect Heights and the Village of Wheeling as an intergovernmental cooperative and is one of the few self-supporting airports in the United States. On December 26th, 2011 Chicago Executive celebrated its twenty-fifth (25) anniversary as a public airport. Designated as a reliever airport by the Federal Aviation Administration, the Airport relieves general aviation traffic from O’Hare International Airport, eight miles south of Chicago Executive Airport. The Airport averages 100,000 annual operations and has about 300 based aircraft. Users of the Airport range from Fortune 500 companies and their executives to private pilots flying in for breakfast. City of Prospect Heights The City of Prospect Heights, formed in 1936, has grown to a population of 17,000 consisting of a mix of single family homes, condominiums and apartment buildings. Prospect Heights incorporated in 1976, making it the first new city in Illinois during the bicentennial year. Prospect Heights boasts a library, excellent schools, and two Park Districts with two facilities, each with a swimming pool and something for all ages. Three shopping centers provide a variety of shopping experiences and numerous quality hotels and motels are near the Airport. Village of Wheeling The Village of Wheeling was settled in 1833. Wheeling features a combination of homes, some more than 75 years old existing among new construction. The growth of business has outpaced Cook County and the State of Illinois creating a strong tax base. Many excellent restaurants are situated along Milwaukee Avenue, “Restaurant Row” giving this community of over 37,000 an enviable reputation. Wheeling sports an 18-hole golf course and country club and a 50,000 square foot recreation center next to the aquatic center which residents of all ages enjoy. Both communities are bordered by almost 1,000 acres of Cook County forest preserve. Train stations provide commuter transportation to both communities.

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Chicago Executive Airport

History Founded in 1925 as Gauthier’s Flying Field, Chicago Executive Airport has grown over the past 86 years from a 40 acre grassy open area with dirt runways to a general aviation airport servicing the metropolitan Chicago area as one of the nation’s busiest reliever airports. Historically, Chicago Executive Airport’s growth reflects the development of its neighboring communities. The Airport continues to grow today with an official plan aimed at facilitating a responsible role for the Airport as a part of the surrounding communities. After opening in 1925, Gauthier’s Flying Field expanded in the 1930s to 91 acres, and 1933 brought the addition of a Blimp Hangar to the field. The airfield was purchased in 1940 by Owen Jones, and in 1946 it was obtained by Parks Aircraft. The field also experienced significant growth during the 1940s, when it was developed to cover 109 acres and to consist of a gravel runway and 70 individual T-Hangars. In 1953, the Airport was acquired by Priester Aviation. Priester continued to develop the Airport for the next thirty-three years. Lighting was installed on the paved runway and a DC-3 Hangar was constructed in 1954. The Airport consisted of four runways by May of 1959. A VOR approach was established for Chicago Executive Airport in 1961. New corporate hangars and a 5,000 foot runway (16/34) were constructed in 1965, and in 1967 the Federal Aviation Administration (FAA) commissioned an air traffic control tower at Palwaukee. A 1,600 foot partial taxiway parallel to Runway 16/34 was completed in 1974. In the same year, the FAA began an ILS installation at the Airport. The largest corporate hangar constructed to that date was built in 1976. Improvements made by Priester Aviation at the Airport continued throughout the late 1970s into the early 1980s, until the Airport was acquired by its neighboring communities in 1986. On December 26, 1986 the Airport changed from private to public ownership when the City of Prospect Heights and the Village of Wheeling (Municipalities) purchased the Airport from the Priester organization. Funding for the purchase was contributed by the FAA, the Illinois Department of Transportation (IDOT). IDOT fronted the Municipalities matching share of the original purchase price. Airport Revenues were used to reimburse the Municipalities which had no effect on the municipal taxes for the two communities. During the 1990s, the Airport has undergone significant construction, upgrading and development projects. In 1990, the Airport constructed new tiedown space in Area 3. Several projects were undertaken by the Airport in 1992, including the acquisition of an office and attached warehouse for Airport Administrative Offices and a Maintenance facility; construction of Taxiway Yankee and Runway 16/34 emergency recabling; and the purchase of over 60 acres of land. Service Aviation became the Airport’s second Fixed Base Operator, in addition to

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Priester Aviation Service, in 1993. In November of 1995, the Airport celebrated the opening of the relocated Wolf Road intersection. The intersection was relocated 575 feet west of its previous location to create a larger safety area for the north end of Runway 16/34. The following August, a corporate apron was constructed near the new control tower. Also in 1996, Priester Aviation built a new corporate hangar on Sumac Road, the first structure to be built on the Airport since it became public. In 1998, Priester constructed two additional corporate hangars in the east quadrant. In 1999, North American Jet became the Airport’s third Fixed Base Operator, locating in the northwest quadrant. Since 2000, several major airfield projects were completed included construction of an eastside parallel taxiway to runway 16/34; rehabilitation and widening of runway 16/34; substantial completion of a westside parallel taxiway to runway 16/34; widening of runway 12/30; removal of airfield obstructions; and building 20 new T-hangars in the southwest quadrant and 48 in the Northeast Quadrant. In 2006, the Airport’s name was changed to Chicago Executive Airport to better describe its location to our national customer base. Today, Chicago Executive Airport is home to an average of over 300 aircraft, including 70 corporate turbine aircraft. An average of about 100,000 takeoffs and landings has been logged annually at the Airport over the past five years. The Airport consists of three active runways and covers more than 426 acres. It is the third busiest airport in the Chicago Region, and plays a crucial role as a reliever for O’Hare International Airport. The Airport operates 24 hours a day, 365 days a year. The air traffic control tower is staffed by the FAA and operates daily between 6 a.m. weekdays (7 a.m. weekends) and 10 p.m. The primary users of the Airport include private airplane owners, flight schools, businesses who maintain their company aircraft at the Airport, and major national corporations. Chicago Executive Airport is managed under the guidance of the Chicago Executive Airport Board of Directors - a board of members from each Municipality plus a chairman who consider both current and long term plans for the Airport. The Airport brings prestige and economic development for both Municipalities through careful planning.

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Glossary

AAAE-American Association of Airport Executives-“AAAE is the world's largest professional organization for airport executives, representing thousands of airport management personnel at public-use commercial and general aviation airports.”

ACE Event-Aviation Career Expo. An event directed towards educating high school students about careers in the aviation industry, held every other year.

AIP-Airport Improvement Program. This FAA program provides grants to public agencies for the planning and development of public-use airports that are included in the National Plan of Integrated Airport Systems (NPIAS).

AOPA-Aircraft Owner’s and Pilot’s Association-a national association with a mission to “provide the resources we need to protect our freedom to fly.”

ATCT-Air traffic control tower.

CABAA-Chicago Area Business Aviation Association Local group dedicated to “advancing the Interests of Business Aviation in Chicago and the Chicagoland Area.

CAFR-Comprehensive Annual Financial Report-Report format recommended by the GFOA. The GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (CAFR Program) in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual governments that succeed in achieving that goal.

CM&T-Crawford, Murphy & Tilly-Chicago Executive’s engineering firm.

COP-Commercial Operating Permit

CPI-Consumer Price Index. We calculate the annual change using the month of December. The change for 2011 is 2.06%.

CVB-Chicago North Suburbs Convention and Visitor’s Bureau-“Our mission is to market Chicago North Suburbs as a meeting and leisure destination; soliciting convention and group business; engage in visitor promotions that generate overnights stays in the hotels; retail, food and beverage sales; expenditures at attractions, festivals, events and other visitor related businesses; thereby enhancing the economic stability of the area.”

EAA-Experimental Aircraft Association“EAA is the only association that offers the fun and camaraderie of sharing your passion for participating in the flying, building, and restoring of recreational aircraft with the most passionate community of aviation enthusiasts.”

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EMAS-Engineered Material Arresting System-is a bed of engineered materials built to stop aircraft from overshooting the end of the runway; similar to a truck overrun in the mountains.

FAA-Federal Aviation Administration-National agency that carries out the government’s aviation policy.

FTE-Full time equivalents. A method of determining the equivalent number of full-time employees based on the total number of hours of work expected by each full and part-time employee for ease in comparisons.

GA Airport Coalition-“GAAC’s mission is to preserve and promote our nation’s general aviation airports.”

GA-general aviation.

GFOA-Government Finance Officers Association-National organization for government finance personnel.

GovDeal-“GovDeals provides services to various government agencies that allow them to sell surplus and confiscated items via the Internet.”

IATA-Illinois Aviation Trades Association-“Promoting the interest and welfare of general aviation in the State of Illinois.”

IGFOA-Illinois Government Finance Officers Association-State organization for Illinois finance officials.

IL CPA Society-Professional association representing more than 24000 certified public accountants in Illinois.

IPAA-Illinois Public Airport Association-“representing Publicly Owned Airports Throughout The State Of Illinois. The IPAA Serves as an exchange center for information about airports, airport facilities and activities.”

NATA-National Air Transport Association-“NATA's mission is to be the leading national trade association representing the legislative, regulatory and business interests of general aviation service companies and to provide education, services and benefits to our members to help ensure their long-term economic success.”

NBAA-National Business Aviation Association-“promotes the aviation interests of organizations utilizing general aviation aircraft for business purposes in the United States and worldwide.”

OFA-object free area.

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PACE-Public Awareness for Chicago Executive Airport- “The council was created in early 2002 to serve as a regular forum for corporate tenants, residents and local business people to discuss and find solutions to a variety of issues that affect the airport and the surrounding community.”

RSA-Runway Safety Area