Microsoft Word - ACFR Intro FY2022

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

For the year ended June 30, 2022

RENO-TAHOE AIRPORT AUTHORITY

Reno, Nevada

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2022

Prepared by

Finance Department

Randall O. Carlton

Chief Finance & Administration Officer

RENO-TAHOE AIRPORT AUTHORITY

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2022

Table of Contents

I. Introductory Section (Unaudited) Page(s)

Letter of Transmittal ...................................................................................................... 1-13

Board of Trustees and Senior Management…………………………………… ............. 14

Organization Chart............................................................................................................ 15

Certificate of Achievement for Excellence in Financial Reporting .................................. 16

II. Financial Section

Independent Auditor’s Report ................................................................................... 17-19

Management’s Discussion and Analysis ................................................................... 20-31

Basic Financial Statements:

Statement of Net Position ............................................................................... 32-33

Statement of Revenues, Expenses and Changes in Net Position ......................... 34

Statement of Cash Flows ................................................................................ 35-36

Notes to Financial Statements ........................................................................ 37-65

Required Supplementary Information:

Schedule of Changes in the RTAA’s Total OPEB Liability

and Related Ratios ............................................................................................... 66

Schedule of RTAA’s Proportionate Share of the Net Pension Liability ............. 67

Schedule of Pension Plan Contributions .............................................................. 68

Supplementary Information:

Schedule of Revenues and Expenses, Comparison of Budget to Actual ............. 69

III. Statistical Section (Unaudited)

Statistical Section Explanations ........................................................................................ 70

Financial Trends

Net Position and Changes in Net Position ...................................................... 71-72

Summary of Operating Results ....................................................................... 73-74

Revenue Capacity

Principal Revenue Payers ............................................................................... 75-76

Principal Revenue Sources ............................................................................. 77-78

Revenue Rates and Cost per Enplanements ......................................................... 79

Debt Capacity

Schedule of Debt and Obligation Coverages ....................................................... 80

Rate Maintenance Covenant Performance ...................................................... 81-82

Ratios of Outstanding Debt and Debt Service ................................................ 83-84

Demographic and Economic Information

Population in Air Trade Area .............................................................................. 85

Principal Employers ............................................................................................ 86

Operating Information

Employees ........................................................................................................... 87

Operational Statistical Summary ......................................................................... 88

Enplanements and Market Share by Scheduled Airline ................................. 89-91

Landed Weights and Market Share by Scheduled Airline .............................. 92-94

Capital Asset Information ............................................................................... 95-96

IV. Compliance Section

Independent Auditor’s Report on Internal Control over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards ....................... 97-98

Independent Auditor’s Report on Compliance for Each Major Federal Program and

Report on Internal Control Over Compliance ..................................................... 99-101

Schedule of Expenditures of Federal Awards ................................................................. 102

Notes to Schedule of Expenditures of Federal Awards .................................................. 103

Schedule of Findings and Questioned Costs ................................................................... 104

Independent Auditor’s Report on Compliance with Requirements Applicable to

The Passenger Facility Charge (PFC) Program and on Internal Control Over

Compliance and the Schedule of Passenger Facility Charges Collected and

Expended ....................................................................................................... .....105-107

Sched

ule of Passenger Facility Charges Collected and Expended ................................. 108

Schedule of Passenger Facility Charges Findings and Questio

ned Costs ...................... 109

Introductory

Section

November 30, 2022

Board of Trustees

Reno-Tahoe Airport Authority

Reno, Nevada

This report is the Annual Comprehensive Financial Report (ACFR) of the Reno-Tahoe Airport Authority

(“RTAA” or “Authority”) for the fiscal year July 1, 2021, through June 30, 2022. The staff of the RTAA

prepared this report and is responsible for the information it contains. The purpose of this report is to

present fully and fairly RTAA’s financial position, operating results, and cash flows.

Management assumes full responsibility for the accuracy, completeness and reliability of the information

contained in this report, based upon a comprehensive framework of internal controls that it has established

for this purpose. The design of the internal accounting controls employed by RTAA is to provide

reasonable assurance that assets will be safeguarded against loss and that financial records will be reliable

for use in preparing financial statements that are free of any material misstatements.

This ACFR contains financial statements and statistical data that fully disclose all the material financial

operations of RTAA. A narrative overview and analysis of RTAA’s financial activities that occurred

during the fiscal year ended June 30, 2022, are presented in the Management’s Discussion and Analysis

(MD&A) found at the beginning of the Financial Section.

This ACFR reflects guidelines recommended by the Government Finance Officers Association of the

United States and Canada (GFOA). The GFOA awards a Certificate of Achievement to those entities

whose annual financial reports conform to the high standards of public financial reporting, including

generally accepted accounting principles issued by the Governmental Accounting Standards Board. It is

our belief that the accompanying ACFR also meets these program standards and will be submitted to the

GFOA for review.

REPORTING ENTITY

The RTAA is a quasi-municipal corporation created by the Nevada State Legislature and began operation

on July 1, 1977. The act creating RTAA provides that it will serve a public use and will facilitate safe and

convenient air travel and transport to and from the Reno-Tahoe area. RTAA is an independent entity that

is not part of any other unit of local government and does not use local property or sales tax revenue to

fund its operation.

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The City of Reno, City of Sparks, Washoe County, and the Reno-Sparks Convention & Visitors Authority

(RSCVA) appoint the nine-member Board of Trustees that governs RTAA. Four members appointed by

the City of Reno, two by the City of Sparks, two by Washoe County, and a ninth board member by the

RSCVA. The Board of Trustees serve a four-year term, and terms are staggered to ensure the continued

presence of experienced members.

RTAA owns and operates the Reno-Tahoe International Airport (RNO) and the Reno-Stead Airport

(RTS). RTS is a general aviation facility that is home to approximately 200-based aircraft, as well as the

famous Reno National Championship Air Races. According to the latest available Federal Aviation

Administration (FAA) statistics, RNO is the 63

rd

busiest commercial passenger airport in the nation. RNO

also has substantial cargo activity and a vibrant general aviation community.

The geographical, or catchment area, served by RNO primarily encompasses the seven northern Nevada

counties of Churchill, Douglas, Humboldt, Lyon, Pershing, Storey, and Washoe and the major cities of

Reno, Sparks, and Carson City (the capital of the State of Nevada). The total catchment area for RNO

also includes the Lake Tahoe area and several communities in northeastern California.

As defined by the FAA, RNO is a medium hub commercial airport which served over 1.8 million

passengers in calendar year 2021. RNO is located four miles southeast of Reno’s central business district.

RTS is a general aviation airport located 11 miles northwest of the central business district. Carson City,

the capital of Nevada, is 30 miles south of Reno. The closest competing commercial airport is 115 miles

away in Sacramento, California. Commercial air service for the public is provided by Alaska Airlines,

Allegiant, American Airlines, Delta Airlines, Frontier Airlines, JetBlue, Southwest Airlines, Spirit

Airlines, Sun Country, United Airlines, and Volaris. Commercial cargo carriers include FedEx, United

Parcel Service (UPS), and DHL. In calendar year 2022, more than 147 million pounds of air cargo was

transported through RNO. Air cargo operations occupy about 25 acres north of the RNO passenger

terminal with two buildings used for air cargo activities that consist of approximately 67,300 square feet.

The ramp facilities can handle 14 aircraft. These facilities serve air cargo carriers including DHL, FedEx,

and UPS and accommodate all types of cargo aircraft.

ECONOMIC CONDITION AND OUTLOOK

The U.S. economy has faced some recent challenges brought on by high inflation, gas prices, and labor

force shortages. After a strong rebound of stock markets last year, 2022 has been a year of high volatility.

The Dow Jones Industrial average hit 36,800 on January 4, 2022, a new record, and 29,900 on June 16,

2022. S&P 500 recorded 4,800 and 3,700 on the same days.

The Bureau of Labor Statistics’ July report mentions the average unemployment rate of 3.5%, the lowest

level since February 2020, pre-pandemic. Total nonfarm payroll employment rose by 528,000 in July,

larger than the average monthly gain over the prior four months. The labor force participation rate of

62.1% has declined in recent months but exceeds the 61.7% recorded in July 2021.

According to the Congressional Budget Office’s (CBO) projections in July 2022, the current and

future economic impact of the COVID-19 pandemic can be summarized as follows:

 The federal budget deficit is expected to reach $1 trillion in 2022, $1.8 trillion less than 2021. At

3.9% of gross domestic product (GDP), the projected deficit in 2022 is much smaller than those

recorded in 2020 and 2021, as federal spending in response to the coronavirus pandemic has

tempered and revenues have risen sharply. Based on CBO’s projections, federal deficits over the

2022–2052 period will average 7.3% of GDP, more than double the average over the past half-

century. This is primarily due to the increase in interest cost.

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 Federal spending in 2022 is expected to represent 23.5% of GDP, a reduction from 2021 and

continuing a declining trend in 2023 and 2024 as federal spending in response to the COVID-19

pandemic diminishes.

 Federal debt held by the public is projected to reach 98% of GDP. According to the CBO debt

begins to rise in 2024, surpasses its historical high in 2031 (107%), and continues to climb

thereafter, rising to 185% of GDP in 2052.

 Real, inflation adjusted GDP is expected to grow by 3.1% in 2022. After 2022, economic growth

is expected to slow and inflationary pressures ease.

The greater Reno area’s economic picture has become far more diversified and the growth in recent years

has been significant. The Reno-Tahoe regional area economy is no longer relying solely on tourism and

gaming, as it was at the time of the 2008 great recession. Northern Nevada’s business friendly

environment, proximity to customers, availability of skilled workforce and logistics continues to attract a

diverse group of businesses to the area. Companies like Tesla, Panasonic, Switch, Microsoft, Apple,

Rackspace, Amazon, Zulily, Patagonia, Urban Outfitters, Thrive Market, and Petco all call Northern

Nevada home for critical business functions.

The diversity of industry in Northern Nevada is expected to provide a solid foundation for recovery and

long-term growth following the COVID-19 pandemic. It will also help soften the effects of a potential

recession. Nevada’s June unemployment rate dropped to 4.7% compared to the 29.5% reached at the

height of the pandemic in April 2020 according to the Nevada Department of Employment, Training and

Rehabilitation (DETR). Of the three Metropolitan Statistical Areas (MSA) in Nevada, Reno’s

unemployment rate was the lowest at 3.3%, while the Las Vegas area was at 5.7% and Carson at 3.7% in

June 2022.

Reno MSA industry trends for the month of June, as published by Ekay Consulting:

 Business Activity Index – provides historical and current trends for business activity in the Reno

MSA region. It includes data on employment, gaming revenue, taxable sales, and airline activity

at RNO (passengers and cargo). The Index shows a 3.19% increase between May and June 2022,

and a 2.22% decline from the same period last year (June 2021).

 Construction Index – provides historical and current trends for the construction industry in the

Reno MSA region. It includes data on construction employment, commercial permits,

commercial permit valuation, residential permit units, and residential permit valuation. The index

shows a decrease of 7.53% between May and June 2022, and 26.52% compared to the same month

in the previous year (June 2022). Construction employment has increased both month over month

and year over year. Commercial and residential permit values, and the number of commercial and

residential permits have declined compared to the previous month and the previous year when

adjusted for inflation and seasonality.

 Housing Affordability Index – based on a ratio of median family income to qualifying family

income, or the income necessary to purchase a median priced home in Washoe County. Includes

data on median price of new and existing homes in Washoe County, median family income, US

30-year fixed mortgage rate. A ratio of 100 indicates that median family income is sufficient to

purchase a median-priced home. The second quarter (2Q) 2022 index of 61.83 indicates median

family income is 38.17% below the income necessary to qualify for median priced home. The

index declined by 14.51% between 2Q 2022 and 1Q 2022, making homes in the region less

affordable.

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AIR SERVICE MARKET UPDATE

Passenger Airlines

U.S. scheduled passenger airlines reported a 2021 after-tax net loss of $2.8 billion, declining for the

second straight year after seven consecutive annual after-tax profits and a pre-tax operating loss of $17.3

billion, declining for the second straight year after 11 consecutive annual pre-tax profit. In 2020, the

airlines reported after-tax net loss of $35.0 billion.

The airlines reported a $17.3 billion pre-tax operating loss in 2021, improved results when compared to

the $46.5 billion loss in 2020. Total 2021 operating revenue was $130.0 billion. The airlines collected

$86.7 billion from fares, 66.7% of total operating revenue, $5.3 billion from baggage fees, 4.1% of total

operating revenues. Reservation change fees were $698 million, or 0.5% of total operating revenues.

Reservation change fees as a percentage of total operating revenues have declined, while the other

categories improved over the prior year. Total operating expenses in 2021 were $147.3 billion, of which

fuel costs accounted for $23.0 billion, or 15.6% of total expenses, and labor costs accounted for $52.6

billion, or 35.7%. In 2020, the operating expense share for fuel was 9.8%, and labor was 39.7%.

Annual Net Income 2017-2021, Systemwide U.S. Scheduled Passenger Airlines

Billions of Dollars ($)

Source: Bureau of Transportation Statistics

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Passenger Activity

Since its emergence as a global pandemic in February of 2020, COVID-19 has been an unprecedented

shock to the airline and travel industries. As vaccines were made available to all willing to be vaccinated

and domestic travel restrictions were lifted, pent-up demand for travel brought back strong passenger

numbers especially at domestic destination airports such as RNO.

U.S. airlines carried 801.3 million systemwide (domestic and international) scheduled service passengers

for the fiscal year ended June 30, 2022, seasonally adjusted, according to the Bureau of Transportation

Statistics’ (BTS), up 86% from the previous year. The airlines carried 16.7% more passengers, seasonally

adjusted, in June of this year than June 2021.

U.S. airlines carried 717.9 million scheduled domestic service passengers, up 81.6% in in the year ended

June 30, 2022, from the previous year, seasonally adjusted, according to the BTS. International passenger

enplanements increased by 137.2% to 83.4 million in the year ended June 30, 2022.

Monthly Passengers on U.S. Scheduled Airlines (Domestic & International)

Seasonally Adjusted, June 2019-June 2022

Source: Bureau of Transportation Statistics

RNO Passengers

RNO served a total of 384,429 passengers in June 2022, a decrease of 3.4% from June 2021. The local

market was served by 11 airlines to 30 non-stop destinations. The total seat capacity decreased 10.5% and

flights decreased 14.8% when compared to June 2021. The average enplaned load factor was 85.7% in

June, an increase of 6.6% from the prior year. RNO served 4,155,405 total passengers during fiscal year

2021-22, a 68.0% increase when compared to fiscal year 2020-21.

On August 10, 2022, Spirit Airlines, RNO’s newest airline started service to Harry Reid International

Airport (LAS) in Las Vegas, Nevada.

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RNO Enplaned Passengers

Cargo Airlines

Nevada has become a major west coast distribution hub due to its strategic location with the Reno/Sparks

area providing next-day ground service to almost every major U.S. city in the western United States. This

sector of the region’s economy includes the presence of major warehousing, pharmaceutical, e-commerce

and distribution facilities including such companies as Amazon, Walmart, Petco, Urban Outfitters, eBay,

Zulily and 1-800-Flowers.com. This sector of the economy, along with growth in industrial development

areas such as the Tahoe-Reno Industrial Center, has played a key role in cargo growth at RNO in recent

years.

RNO handled 12,105,721 pounds of air cargo in June 2022, a decrease of 6.9% when compared to June

2021. RNO handled 147,276,696 pounds of air cargo in Fiscal Year 2021-22, a decrease of 3.6% when

compared to Fiscal Year 2020-21.

RNO Total Cargo Volume in Pounds

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MAJOR INITIATIVES

Strategic Initiatives

On June 14, 2018, the Board of Trustees approved a Strategic Plan for the fiscal years 2018-19 through

2022-23, as amended December 12, 2019. The Strategic Plan reflects extensive input from the Board,

RTAA employees, the public and interested stakeholders. The purpose and desired outcomes of the

updated plan include the following:

 Shared Vision: A strategic vision for the organization that is shared by staff and the Board of

Trustees.

 Strategic Direction: Core strategies that will help guide RTAA over the next 5 years.

 Roadmap: A high-level plan to guide priority setting and serve as a helpful road map for staff

and the Board of Trustees.

 Planning Structure: Long-term goals and performance measures that support the strategic

priorities and provide a planning structure for objectives setting and annual action plans.

 Agility/Flexibility: A living plan that provides direction but is also flexible and broad enough to

incorporate constant change in the aviation industry.

The Strategic Plan consists of the following components, beginning with the broadest, long-term elements

to the more specific, short-range and tactical activities: (1) Vision Statement; (2) Mission Statement; (3)

Strategic Priorities and Support Strategies; (4) Long-Term Goals; (5) Key Performance Indicators; and

(6) Short-Term/Annual Objectives. The Vision Statement aims to provide modern, safe, convenient

facilities and deliver customer satisfaction that is a source of community pride and serves as a significant

contributor to regional economic health.

Our Mission Statement of We Move You! We Bring the World to Reno-Tahoe and Reno-Tahoe to the

World is directed by the following eight (8) adopted Strategic Priorities:

1. Passenger and Air Cargo Service: Enhance air service by retaining and increasing passenger and

air cargo service.

2. Safety and Security: Safety and security of all is our priority 24/7, 365.

3. General Aviation: Foster an atmosphere to encourage general aviation growth at both airports.

4. Customer Experience: Enhance services and provide a positive and convenient environment for

all.

5. People: With our employees being the current and future strength of our organization, our focus

is on development, succession planning and making RTAA the employer of choice.

6. Financial Diversification and Growth: Grow and diversify non-airline revenues at both Airports.

7. Facilities for the Future: Optimize infrastructure to address market demand.

8. Sustainability: Operate and manage with a holistic approach reflecting sustainability and

environmental stewardship.

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On December 12, 2019, the Board approved an update to the Strategic Plan to incorporate input from the

Board and RTAA staff and adjust direction of Facilities for the Future from “substantively” to

“transformative” to accommodate the increasing demands and dynamics of the airport and customer

experience. A second adjustment in this update elevated Safety & Security from “sustain” to

“transformative” to address interests in upgrading public safety and security for all airport stakeholders.

Air Service Development

The success in expanding service by existing carriers reflects the combined efforts of RTAA and a

regional partnership with the Regional Air Service Corporation (RASC), comprised of convention and

visitor bureaus, hotels, casinos, ski resorts, and various business groups. In addition, the community

partnerships with RSCVA, EDAWN, Reno Sparks Chamber of Commerce, and associations have all

played an important role in the recent success. Staff is committed to building on this success by continuing

the following:

(a) Support of existing air service through awareness efforts, such as:

 Airport website

 Airline celebrations (inaugurals, anniversaries, etc.)

 In-terminal assets (Lamar print and digital signage opportunities)

 Local publications (i.e., Planners – North Tahoe, South Tahoe, RSCVA)

 Advertorials in industry publications (i.e., anna.aero & Air Service One)

 Community events (i.e., Chamber Alliance, etc.)

 Community and partner presentations (i.e., RASC partner opportunities, RSCVA

convention and sales webinars, etc.)

(b) Continue to work with the RASC and the local community to bring new air service to RNO.

With the FAA policy restricting the use of RTAA funds in support of new air service, the RASC

and its partners have historically been able to provide the following:

 Promotion through partner databases (locally and out of market)

 Promotion through partner digital marketing efforts

 Promotion through partner traditional marketing efforts

 Air carrier marketing cooperative programs

 Promotion through public relations programs

 Air carrier risk mitigation efforts

RASC offers a marketing resource that no other community can match - a consortium that

spreads across multiple industries and counties to promote air service and the region.

(c) Host airline representatives to the Reno-Tahoe region as guests to highlight the area by private

invitations, Familiarization Tours promoting leisure and business, special event attendance, and

more.

(d) Continue on-going efforts to attract new, as well as expand and maintain existing air service

through headquarter meetings, industry conferences, and periodic check-in calls.

(e) Continue funding for an additional Customs and Border Protection (CBP) officer to reduce

processing times to enter the United States by international passengers. The additional CBP

officer began in July 2018.

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(f) In accordance with the FAA's Policy and Procedures Concerning the Use of Airport Revenue and

Board adopted policy, RTAA revenue may provide the following financial incentives:

1. Waiver or reduction of airport fee and charges, and

2. Funding for acceptable promotional costs, where the purpose is to encourage an air carrier

to bring and/or increase air service at the airport.

The FAA allows promotional incentives to air carriers for new service to (a) increase travel using

the airport and/or (b) promote competition at the airport.

Land and Facilities Development

As an integral element to all strategic priorities, RTAA must not only support but also proactively respond

to market demands. Infrastructure needs outlined in the RNO Master Plan provides a proactive response

to the projected growth of passenger traffic at RNO by nearly 60% from 2017 to 2036, which is on top of

a 10% increase from 2016.

The strategic approach to create facilities for the future is envisioned as follows:

Relieve congestion in RNO public parking and rental car facilities. RNO’s growth over the last

five years has resulted in congestion in the public parking facilities requiring RTAA to implement

overflow procedures more frequently during peak periods. Additionally, the Short-Term Parking area

on the first floor of the garage fills to capacity during peak periods multiple times per week due to

constraints caused by sharing the space with the rental car companies. Moreover, the rental car

companies have outgrown their operations on the first floor of the garage. Together, the rental car

companies hired Conrac Solutions, LLC to design, build, finance, own and operate a new Consolidated

Rental Car Facility (ConRAC) to accommodate their need for additional space. A Ground Transportation

Center (GTC) component will also be incorporated into the project at the request of the rental car

companies, creating a centralized transportation hub for the airport. This facility will free up

approximately 700 parking spaces in the garage and current Quick Turn Around (QTA) areas.

Additionally, the rental car companies will move their current ticket counter operations out of baggage

claim and into the new customer service building located within the ConRAC/GTC, freeing up space that

can be utilized by airlines, airline support, or other underserved uses.

Redevelop RNO terminal concourses which are aging and undersized. With the existing concourses

being 40 years old, RTAA needs to replace the terminal concourses with new and larger concourses

to address existing constraints, such as limited space for new amenities and concessions, and allow for

future growth and expansion for both domestic and international travel. A planning study to identify the

preferred alternative for redevelopment concludes in 2022, and design is anticipated to begin in 2023.

The preferred alternative is the 28-Gate New Build Alternative and involves the full replacement of

existing Concourses B & C with larger concourses, the partial replacement of the Connector Concourse,

new and replacement aircraft apron, a new central utility plant to be located outside the main terminal

building footprint, and adjustments to existing Taxiway Alpha to provide room to expand the concourses

east.

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The primary improvements are described below in greater detail:

Facility/Service PrimaryRecommendedImprovements

ConcourseDimensions

Increaseoverallsquarefootagefrom155,000SFto250,000SFand

concoursewidthfrom74’to110’.

Passenger&Employee

Experience

Incorporateexperienceenhancementsincludinghigherceilings,

increasednaturallight&mountainviews,outdoorspaces,intuitive

wayfinding,minimalincreasestowalki ngdistances,andexceed

requiredADAstandards.

BuildingSystems

Constructseparatecentralutilityplant,installnewmaindistribution

framefacilityandnewcentralizedmechanical&electricalsystems.

ClimateResiliency

Installcriticalbuildingsystemsabovefloodconcernareas,incorporate

intodesignfeaturesfocusedonenergyefficiency, greenhousegas

emissionreduction,waterconservation,wastemanagement,water

quality,andindoorairquality.

AircraftGates/Parking

Positions

Replaceexisting23gateswith28newgatesofvaryingsizes,capableof

supportingsixteen(16)737Max‐10aircraftandtwelve(12)ERJaircraft

atsametime.

Allaircraftgatestoincludepassengerboardingbridges(PBB).Eleven

(11)oftheexistingPBBcanbereusedforthenewconcourses.The

remainingtwelve(12)arepasttheendofusefullifeandwillrequirefull

replacement.

Atotalofseventeen(17)newPBBwillneedtobe

acquired.

PassengerHoldrooms

Replaceexisting23holdrooms(1,450SFaverage)with28new

holdroomsofvaryingsizes(16holdroomsat2,800SFeachand12

holdroomsat1,500SFeach).

Concessions

Replaceexisting25,000SFofretail,restaurant,gamingspacewith

50,000SFofnewspaceintheconcourses.

FirstFloorOperations

(Concessions,Airport)

Replaceexisting65,000SFwith85,000SFnewspace,incorporate50’

drive‐thrutunnelswideandtallenoughforexistinggroundvehicle

fleet,addcentraldistributioncenterfordeliveryandstaging.

Anadditional40,000SFcoveredspacewillalsobeavailableforfuture

build‐outifneeded.Untilthen,thatspacecanbeusedforstorage

and/orgroundvehicleparking.

AircraftNon‐Movement

andMovementAreas

Widendistancebetweennewconcoursestoallowforcreationofadual

taxilaneinthecentral alley,expandapronsouthtoreplacesouth

remainovernight(RON)spots,relocatenorthRONsandinternational

parkingpositions,andreconfigureTaxiwayAtoallowforeastern

expansionofconcourses.



10

Modernize the RNO Terminal Building to accommodate future technologies and enhance

customer experience and wayfinding. The terminal building consists of the functional areas in the

non-sterile zone, including the ticketing hall, main lobby, security-screening checkpoint (SSCP)

and baggage claim areas. The facility requirements analysis in the RNO Master Plan shows these

areas are sufficient in size through the projected 2036 planning period. However, RNO currently

experiences congestion, queuing, and wayfinding issues. This effort will focus on the following areas:

 Ticketing Hall – Expand circulation by relocating the existing entry outside of the existing

terminal building envelope into the curbside public space to improve queuing and circulation,

build new restrooms within the ticket hall area, incorporate digital signage and common use

equipment, design improvements to make the experience in the Ticketing Hall more welcoming

and enjoyable including more natural light, higher ceilings, and art.

 Intuitive Wayfinding – The basic layout at RNO allows for intuitive passenger wayfinding.

However, the current organization of concessions, art, gaming, and other amenities has relied

heavily on signs to communicate wayfinding. The execution of this signage diminishes the

intuitive nature of the airport layout. RTAA will focus on enhancing clarity by incorporating

intuitive wayfinding in future improvements projects.

Modify the RNO Airfield to FAA Compliance. The runway and taxiway system is in good condition

and meets FAA standards, except for some non-standard geometry that should be addressed as new

airfield projects are implemented. The following are identified airfield improvements:

 Runway 17R CAT II Approach: Site the location of an additional Runway Visual Range (RVR)

on Runway 17R to enhance instrument approach capabilities.

 Deicing Aprons: Examine dedicated deicing or anti-icing areas at ends of Runways 17R/L and

35L/R to help facilitate operations during winter storms. A north deicing pad could be constructed

after completion of the Concourse Redevelopment efforts, while a south deicing pad could be

constructed as part of future air cargo development.

 Address taxiway hot spots and intersections: The FAA has designated three areas on the airfield

as being areas of high potential for incursion and improvements to these areas need to be evaluated

to enhance safety. The Juliet and Lima hotspots were successfully addressed during the Taxiway

Charlie Reconstruction project. The 17L/35R south end hotspot was initially recommended to be

addressed by correcting non-standard taxiway geometry at the south end of Taxiway Alpha. That

mitigation effort was not successful. As a result, additional analysis focused on signage and

marking adjustments is underway.

 Develop airfield geometry improvements to address non-standard taxiway geometry and

intersections that do not comply with FAA taxiway design guidance.

 Consider moving aircraft hold short positions to 294 feet from runway centerlines. RTAA will

coordinate with FAA Airport District Office to clarify the need for compliance with new

standards.

 Run-Up Aprons: Evaluate areas to locate pavement where propeller aircraft can perform system

checks prior to departure. Construction of a run-up area at the north end of Taxiway Charlie has

been designed. Construction, pending bids and funding, is anticipated for 2023.

11

FINANCIAL INFORMATION

While RTAA is a quasi-governmental entity, the generally accepted accounting principles applicable to

an enterprise fund governmental entity apply. RTAA’s financial statements are prepared on an accrual

basis. Revenues are recognized when earned, not when received. Expenses are recognized when incurred,

not when paid. Financial policies are set to conform to generally accepted accounting principles and the

accrual basis of accounting. There were no unusual financial policies or one-time activities during the

current period.

RTAA has several funds that accumulate money for specific and discretionary purposes. These are not

the governmental purpose type funds usually seen in governmental accounting, but debt related accounts.

The RTAA’s revenue bond resolutions establish the funds and their payment priority. These funds are

common in the airport industry's revenue bond resolutions.

The revenue bond resolutions are the RTAA's contract with the purchasers of the revenue bonds. This

contract specifies how RTAA will manage its money so that it will have sufficient funds to operate the

Airport system, and to pay the interest and principal due.

RTAA prepares, approves, and revises its budget pursuant to Nevada's Local Government Budget and

Finance Act, airline agreements, and the RTAA’s revenue bond resolutions. The table below outlines the

statutory requirements:

Statutory Date Calendar Date Action

April 15

th

April 15, 2022 Tentative budget filed with the

Nevada Department of Taxation

Not more than 14 nor less than 7

days before the date set for the

hearing

May 10, 2022 Notice of Budget Public Hearing

published

Not sooner than the third

Monday in May and not later

than the last day in May

May 19, 2022 Hold Public Hearing

On or Before June 1s

t

May 19, 2022 Adopt Budget.

Pursuant to airline agreements, airlines that have signed agreements with RTAA must also review the

budget. Adoption of a resolution by the RTAA’s Board of Trustees is required for any subsequent changes

to the budget and the amendment submitted to the Nevada Department of Taxation for approval.

INTERNAL CONTROLS

The RTAA’s management is responsible for establishing and maintaining an internal control structure

designed to ensure that the assets are protected from loss, theft or misuse, and to ensure that adequate

accounting data are compiled to allow for the preparation of financial statements in conformity with

generally accepted accounting principles. The internal control structure is designed to provide reasonable,

but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes

that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of

costs and benefits requires estimates and judgments by management.

12

REPORTI

NG ACHIEVEMENT

The Government Finance Officers Association (“GFOA”) of the United States and Canada awarded a

Certificate of Achievement for Excellence in Financial Reporting to RTAA for its Annual Comprehensive

Financial Report for the fiscal year ended June 30, 2021. This was the 35th consecutive year that RTAA

has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the Annual

Comprehensive Financial Report must be easily readable, efficiently organized, and conform to the

program standards. This report must satisfy both generally accepted accounting principles and applicable

legal requirements. A Certificate of Achievement is valid for a period of one year only. RTAA believes

this current report continues to meet the Certificate of Achievement Program’s requirements and will

submit this report to the GFOA to determine its eligibility for another certificate.

INDEPENDENT AUDIT

Nevada Revised Statutes 354.624 requires that RTAA have its financial statements audited each year by

an Independent Certified Public Accountant. In addition, the receipt of Federal funds and Passenger

Facility Charges, to assist in funding capital improvement projects and security-related costs, requires the

audit meet federal audit standards referred to collectively as the "Single Audit Act". The reports of the

RTAA’s auditors, Crowe LLP, are included herein.

Respectfully submitted,

Daren A. Griffin, A.A.E.

President/CEO

13

RENO-TAHOE AIRPORT AUTHORITY

JUNE 30, 2022

Board of Trustees Position Term

Expires

Represents

Shaun Carey Chair June 2023 City of Sparks

Adam Kramer Vice-Chair June 2025 Washoe County

Jenifer Rose Treasurer June 2023 City of Reno

Richard Jay Secretary June 2025 City of Reno

Jessica Sferrazza Trustee June 2023 City of Reno

Jennifer Cunningham Trustee June 2025 City of Reno

Art Sperber Trustee June 2025 City of Sparks

Carol Chaplin Trustee June 2025 Reno-Sparks Convention &

Visitors Authorit

y

Lisa Gianoli Trustee June 2023 Washoe Count

y

More information on the Board of Trustees can be viewed on the RTAA website at

www.renoairport.com or by clicking RTAA Board of Trustees.

Staff Title

Daren Griffin, A.A.E. President/CEO

Cris Jenson Chief Operations & Public Safety Officer

Gary Probert Chief Infrastructure & Planning Officer

Randall Carlton Chief Finance & Administration Officer

Tina Iftiger Chief Commercial Officer

Brian Kulpin Chief Marketing & Public Affairs Officer

Larry Harvey Chief People, Culture & Equity Officer

14

Scott Gordon

Manager of Reno-Stead

Airport

328-6573

Gary Probert

Chief Infrastructure and

Planning Officer

Randall Carlton

Chief Finance and

Administration Officer

Marty Mueller

Manager of IT Security

Alex Kovacs

Director of Finance

Tracy Caster

Manager of Accounting

Larry Harvey

Chief People, Culture and

Equity Officer

Chris Cobb

Manager of Engineering &

Construction

Art Rempp

Director of IT/ Chief Information

Officer

David Pittman

Director of Facilites &

Maintenance

George Lanyon

Facilities Superintendent

Dave Derie

Airfield Superintendent

Aurora Ritter

Manager of Airport Economic

Development

Cris Jensen

Chief Operations and Public

Safety Officer

Dale Carnes

Chief of Airport Rescue

Firefighters

Ricardo Duarte

Chief of Airport Police

Brandon Mikoleit

Manager of Landside

Operations

Carrie Guedea

Manager of Airside

Operations

Brad Erger

Manager of Properties

Reno-Tahoe Airport Authority Board of Trustees

Chief Legal Officer

Daren Griffin

President/CEO

Brian Kulpin

Chief Marketing and Public

Affairs Officer

Holly Luna

Manager of Purchasing &

Materials Management

Tina Iftiger

Chief Commercial Officer

Hasaan Azam

Manager of Ai

r Service & Cargo

B

u

si

nes

s

De

vel

o

p

m

en

t

Lissa Butterfield

Manager of Planning &

Environmental Serv

ices

Ben Carpenter

Manager of Airport

Communications

Shane Imsdahl

Manager of IT

Trish Tucker

Manager of Air Service &

Co

mmunity Engagement

Stacey Sunday

Director of Corporate

Communication

s

Janelle Conine

Customer Service Supervisor

Julie Sternberg

Manager of Labor Relations

and Benefits

Tracy Moore

Airport Emergerncy

Manager

Romona Agena

Manager of Airport

Security

Vacant

Director of Operations

15

Government Finance Officers Association

Certificate of

Achievement

for Excellence

in Financial

Reporting

Presented to

Reno-Tahoe Airport Authority

Nevada

For its Annual Comprehensive

Financial Report

For the Fiscal Year Ended

June 30, 2021

Executive Director/CEO

16

Financial Section

17

INDEPENDENT AUDITOR’S REPORT

To the Board of Trustees

Reno-Tahoe Airport Authority

Reno, Nevada

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the business-type activities of the Reno-Tahoe Airport Authority (the

“Authority” or “RTAA”), as of and for the year ended June 30, 2022, and the related notes to the financial

statements, which collectively comprise the Authority’s basic financial statements as listed in the table of

contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects,

the respective financial position of the business-type activities of the Authority, as of June 30, 2022, and the

respective changes in financial position and, where applicable, cash flows thereof for the year then ended in

accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America

(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards

(Government Auditing Standards), issued by the Comptroller General of the United States. Our responsibilities

under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial

Statements section of our report. We are required to be independent of the Authority, and to meet our other

ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance

with accounting principles generally accepted in the United States of America, and for the design,

implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events,

considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going

concern for twelve months beyond the financial statement date, including any currently known information that

may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our

opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not

a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always

detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from

fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control. Misstatements are considered material if there is a

substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a

reasonable user based on the financial statements.

18

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

x Exercise professional judgment and maintain professional skepticism throughout the audit.

x Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, and design and perform audit procedures responsive to those risks. Such

procedures include examining, on a test basis, evidence regarding the amounts and

disclosures in the financial statements.

x Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is

expressed.

x Evaluate the appropriateness of accounting policies used and the reasonableness of

significant accounting estimates made by management, as well as evaluate the overall

presentation of the financial statements.

x Conclude whether, in our judgment, there are conditions or events, considered in the

aggregate, that raise substantial doubt about the Authority’s ability to continue as a going

concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that

we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s

Discussion and Analysis, the Schedule of RTAA’s Proportionate Share of the Net Pension Liability, the Schedule

of Pension Plan Contributions, and the Schedule of Changes in RTAA’s Total OPEB Liability and Related Ratios

as listed in the Table of Contents, be presented to supplement the basic financial statements. Such information,

although not a part of the basic financial statements, is required by the Governmental Accounting Standards

Board who considers it to be an essential part of the financial reporting for placing the financial statements in an

appropriate operational, economic or historical context. We have applied certain limited procedures to the

required supplementary information in accordance with auditing standards generally accepted in the United

States of America, which consisted of inquiries of management about the methods of preparing the information

and comparing the information for consistency with management’s responses to our inquiries, the basic financial

statements, and other knowledge we obtained during our audit of the basic financial statements. We do not

express an opinion or provide any assurance on the information because the limited procedures do not provide

us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively

comprise the Authority’s basic financial statements. The Introductory Section, Statistical Section, the Schedule

of Revenues and Expenses, Comparison of Budget to Actual, the Schedule of Debt Service Requirements on

Bonds and Notes, and the Schedule of Expenditures of Federal Awards (SEFA) as required by Title 2 U.S. Code

of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards, as listed in the Table of Contents, are presented for purposes of additional

analysis and are not a required part of the basic financial statements.

The Schedule of Revenues and Expenses, Comparison of Budget to Actual, Schedule of Debt Service

Requirements on Bonds and Notes, and SEFA the responsibility of management and were derived from and

relates directly to the underlying accounting and other records used to prepare the basic financial statements.

Such information (except for the cumulative thru June 30, 2021 amounts on the SEFA) has been subjected to

the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,

including comparing and reconciling such information directly to the underlying accounting and other records

used to prepare the basic financial statements or to the basic financial statements themselves, and other

additional procedures in accordance with auditing standards generally accepted in the United States of America.

In our opinion, the Schedule of Revenues and Expenses, Comparison of Budget to Actual, Schedule of Debt

Service Requirements on Bonds and Notes, and SEFA (except for the Cumulative thru June 30, 2022 amounts)

are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The Introductory Section, Statistical Section, and Cumulative thru June 30, 2022 amounts on the SEFA have not

been subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly,

we do not express an opinion or provide any assurance on them.

19

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2022

on our consideration of the Authority’s internal control over ¿nancial reporting and on our tests of its compliance

with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of

that report is solely to describe the scope of our testing of internal control over ¿nancial reporting and compliance

and the results of that testing, and not to provide an opinion on the eႇectiveness of the Authority’s internal control

over ¿nancial reporting or on compliance. That report is an integral part of an audit performed in accordance with

Government Auditing Standards in considering the Authority’s internal control over ¿nancial reporting and

compliance.

Crowe LLP

Indianapolis, Indiana

November 30, 2022

MANAGEMENT’S DISCUSSION

AND ANALYSIS

RENO-TAHOE AIRPORT AUTHORITY

MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2022

This Management Discussion and Analysis (MD&A) of Reno-Tahoe Airport Authority (“RTAA” or “the

Authority”) provides an introduction and overview of the major activities affecting the operations and the

financial performance of RTAA for the fiscal year (FY) ended June 30, 2022. The information contained

in this MD&A should be considered in conjunction with the information contained in RTAA’s financial

statements.

FINANCIAL HIGHLIGHTS

 The Authority’s assets and deferred outflows exceeded liabilities and deferred inflows, or Net

Position, by $459.125 million at June 30, 2022.

 The number of enplaned passengers at the Reno-Tahoe International Airport (RNO) increased 69%

to 2.080 million and landing fees increased 18% to $10.585 million from the prior year.

 At June 30, 2022 the Authority had no debt. As of June 30, 2021, RTAA had $12.290 million of

outstanding airport revenue bonds related to the construction of the public parking garage. On

December 9, 2021, the Board of Trustees approved the prepayment of the 2015 Bonds. RTAA

received federal stimulus funds as reimbursement of the debt payoff amount in January 2022.

 RTAA’s operating revenues increased $14.402 million (33%) from the prior fiscal year.

 The Authority recognized $41.522 million in lease receivables, $41.265 million in deferred inflow

of resources, and $592 thousand in lease interest income as on June 30, 2022, and for the year then

ended, related to the implementation of Governmental Accounting Standards Board (GASB)

Statement No. 87, Leases.

 Federal stimulus grant revenue increased 59% over prior year to $14.483 million for the year ended

June 30, 2022. Funding sources include award amounts from the Coronavirus Aid, Relief and

Economic Security (CARES) Act, American Rescue Plan Act (ARPA), and Coronavirus Response

and Relief Supplemental Appropriations (CRRSA) Act funding.

OVERVIEW OF THE FINANCIAL STATEMENTS

RTAA’s financial statements are prepared on the accrual basis in accordance with accounting principles

generally accepted in the United States of America (GAAP) promulgated by GASB. RTAA has a single

enterprise fund, and as such separate government-wide financial statements are not prepared. Revenues are

recognized when earned, not when received, and expenses are recognized when incurred, not when paid.

Capital assets are capitalized and depreciated over their useful lives. See the notes to RTAA’s financial

statements for a summary of the significant accounting policies.

This discussion and analysis is intended to serve as an introduction to RTAA’s basic financial statements.

The basic financial statements consist of three components: 1) fund financial statements, 2) notes to the

financial statements, and 3) required supplementary information other than the MD&A.

Fund financial statements – RTAA maintains its accounting records in a single enterprise fund. An

enterprise fund is a type of proprietary fund used to report business-type activities.

The statement of net position presents information on RTAA’s assets, deferred outflows of resources,

liabilities, and deferred inflows of resources, with the difference shown as net position.

20

MANAGEMENT’S DISCUSSION AND ANALYSIS

The statement of revenues, expenses and change in net position presents information on how RTAA’s net

position changed during the fiscal year. All changes in net position are reported as soon as the underlying

events giving rise to the changes occur, regardless of the timing of the related cash flows.

The statement of cash flows presents RTAA’s cash flow (sources and uses) related to operating activities,

non-capital financing activities, capital financing activities, and investing activities during the year.

Notes to Financial Statements - The notes to the basic financial statements provide additional information

that is essential to a full understanding of the data provided in the fund financial statements.

Required Supplementary Information other than MD&A - In addition to the basic financial statements

and accompanying notes, this report also presents certain required supplementary information related to

RTAA’s pension plan as required by the GASB to supplement information found in the notes to the basic

financial statements.

FINANCIAL ANALYSIS

Statement of Net Position

Net position may serve over time as a useful indicator of an organization’s financial position. The

Authority’s assets and deferred outflows exceeded liabilities and deferred inflows by $459.125 million at

June 30, 2022.

The following summarizes RTAA’s financial position as of June 30, 2022, and 2021:

2022 2021

$ Change % Change

Assets

Current assets 96,078,982$ 75,560,311$ 20,518,671$ 27%

Current assets-restricted 29,978,053 26,517,614 3,460,439 13%

Capital assets, net of depreciation 388,632,933 375,980,175 12,652,758 3%

Lease receivable, long term 33,195,211 - 33,195,211 100%

Other assets 1,383,599 1,383,599 - 0%

Total assets 549,268,778 479,441,699 69,827,079 15%

Deferred outflows of resources 14,125,539 5,771,560 8,353,979$ 145%

Liabilitie s

Current liabilities 11,951,622 8,551,985 3,399,637 40%

Payable from restricted assets 101,202 3,649,496 (3,548,294) -97%

Non-current liabilities 29,239,410 52,996,819 (23,757,409) -45%

Total liabilities 41,292,234 65,198,300 (23,906,066)$ -37%

Deferred Inflow of Resources 62,977,306 2,977,221 60,000,085$ 2015%

Net Position

Net Investment in Capital Assets 388,632,933 361,855,033 26,777,900 7%

Restricted Net Position 28,495,282 25,980,476 2,514,806 10%

Unrestricted Net Position 41,996,562 29,202,230 12,794,332 44%

Total Net Position 459,124,777$ 417,037,739$ 42,087,038$ 10%

21

MANAGEMENT’S DISCUSSION AND ANALYSIS

Total assets of $549.269 million reflect an increase of $69.827 million or 15% as compared to 2021. A

significant portion of the increase relates to the creation of a lease receivable balance from GASB 87 and

capital asset activity.

Unrestricted current assets increased by $20.519 million or 27%. This is mainly due to the increase of cash

and investments of $12.752 million and the recognition of $8.242 million in lease receivables as a result of

the implementation of GASB Statement No. 87. These increases are partially offset by reductions in

accounts receivable of $196 thousand and other current assets of $251 thousand.

Restricted current assets increased by $3.460 million or 13%, due to higher balances in restricted

investments of $4.645 million or 20%. This increase is partially offset by the $2.281 million or 99%

decrease in cash and cash equivalents.

Capital assets of $388.633 million increased by $12.653 million or 3% as compared to the prior year. The

increase is primarily due to $28.754 or 4% increase in new capital assets and $8.838 million or 22% increase

in construction in progress. These increases are partially offset by the $24.939 million or 4% increase in

accumulated depreciation and amortization.

Other assets are comprised of regional road impact credits with the Regional Transportation Commission

(RTC) of Washoe County valued at $1.384 million. The regional road impact fee is a one-time assessment

to pay for new roads or improvements to existing roads necessary to serve traffic from a new development.

The fee is paid at the time a building permit is issued. RTAA owned credits are currently set to expire on

June 26, 2033 and can be used as an offset to the road impact fee as needed or sold to others.

Total liabilities of $41.292 million decreased $23.906 million or 37% for the fiscal year ended June 30,

2022. The significant factors for the decline are the retirement of $12.290 million in outstanding revenue

bonds, and a reduction in net pension liability of $14.017 million.

The largest portion (85%) of RTAA’s total net position represents the investment in capital assets, less the

related indebtedness outstanding used to acquire those capital assets. On June 30, 2022, RTAA had

$388.633 million of net investment in capital assets, an increase of $26.778 million or 7% from the prior

fiscal year. RTAA uses these capital assets to provide services to airlines, passengers, visitors, and service

providers at the Airport. Consequently, these assets are not available for future spending.

An additional portion (6%) of RTAA’s net position represents restricted resources of $28.495 million, a

$2.515 million or 10% increase from FY 2021. The restricted net position is not available for spending due

to the following commitments:

As of June 30, 2022, the remaining unrestricted net position of $41.997 million, or 9% of total net position

represents liquidity available to meet any of RTAA’s on-going obligations.

2022 2021

Revenue bond operations and maintenance 7,532,989 7,724,482

Renewal and replacement 770,498 786,759

Passenger facility charge projects 20,160,846 15,516,627

Debt service - 1,909,953

Other reserve purposes 30,949 42,655

28,495,282 25,980,476

22

MANAGEMENT’S DISCUSSION AND ANALYSIS

The following presents RTAA’s deferred outflows and inflows as of June 30, 2022, and 2021:

A deferred outflow of resources is the recognition of “consumed” net assets that is applicable to a future

reporting period. This recognition includes: (1) pension contributions of $2.819 million to the Public

Employees Retirement System (PERS) of the State of Nevada after the measurement date of June 30, 2021;

(2) the pension value changes in actuarial assumptions of $8.156 million; differences identified on the

Schedule of Employer Allocations, Schedule of Pension Amounts by Employer and Related Notes by

PERS; (3) pension differences between expected and actual pension experience of $2.721 million; and (5)

contributions related to Other Postemployment Benefits (OPEB) liability of $127 thousand.

Conversely a deferred inflow of resources is the recognition of “acquired” resources of net assets applicable

to a future reporting period. This recognition includes: (1) pension difference between actual and projected

earnings on plan investments of $20.044 million (2) the differences in economic and demographic factors

used in the projected actuarial assumptions and actual experiences of $173 thousand; (3) the difference

between the actual and proportionate share of contribution of $1.580 million; and (4) the value of lease

receivables of $41.180 million.

The deferred outflows and inflows related to RTAA’s pension plan and OPEB are further explained in Note

9 - Pension Plan and Note 13 - Other Postemployment Benefits (OPEB) in the notes to the financial

statements. Deferred inflows related to leases are discussed in detail in Note 8 – Leases.

Statement of Changes in Net Position

During the current fiscal year, the Authority’s net position increased by approximately $42.087 million.

The following summarizes the changes in RTAA’s net position for June 30, 2022, and 2021:

2022 2021 $ Change % Change

Deferred outflows of resources 14,125,539$ 5,771,560$ 8,353,979$ 145%

Deferred inflows of resources 62,977,306 2,977,221 60,000,085 2015%

2022 2021 $ Change % Change

Operating revenues 58,065,181$ 43,662,916$ 14,402,265$ 33%

Operating expenses 46,340,021 42,612,297 3,727,724 9%

Operating income before depreciation

and amortization 11,725,160 1,050,619 10,674,541 1016%

Depreciation and amortization expense 25,079,112 26,827,690 (1,748,578) -7%

Operating income/(loss) (13,353,952) (25,777,071) 12,423,119 48%

Non-operating revenues/(expenses) 27,754,958 16,386,414 11,368,544 69%

Income/(loss) before capital contributions 14,401,006 (9,390,657) 23,791,663 253%

Capital contributions 27,686,032 25,193,485 2,492,547 10%

Change in net position 42,087,038$ 15,802,828$ 22,043,085$ 139%

23

MANAGEMENT’S DISCUSSION AND ANALYSIS

Significant Changes in Net Position for Fiscal Year 2022 versus 2021

Total operating revenues increased by $14.402 million or 33% and total operating expenses increased by

$3.728 million or 9%. A review of these two categories is detailed below.

Depreciation and amortization expense of $25.079 million was $1.749 million or 7% lower than the prior

year due the full depreciation of certain assets in the prior year.

Non-operating income of $27.755 million increased by $11.369 million or 69% over prior year. This is

primarily due to the increase of federal stimulus grant revenues (CARES, ARPA, and CRRSA).

Capital contributions of $27.686 million, primarily comprised of grants from the Federal Aviation

Administration (FAA), increased by $2.493 million or 10% in FY 2022 as compared to FY 2021. The grant

contributions include reimbursements for runways, taxiways, and apron rehabilitation.

Operating Revenues

Revenues are defined as “operating” for those revenue categories used to finance RTAA’s operation and

maintenance of RNO and Reno-Stead Airport (RTS). Included are landing fees, concession revenues,

parking, and other charges. The table below represents operating revenues by source for the fiscal years

ended June 30, 2022, and 2021:

Significant Changes in Operating Revenues for Fiscal Year 2022 versus 2021

A key metric associated with RTAA’s operating revenues is the number of enplaned passengers at RNO.

The COVID-19 pandemic caused unprecedented disruption of the passenger airline traffic worldwide.

Governments issued travel restrictions, mask mandates, and other restrictive measures in an effort to

manage the pandemic. The number of enplaned passengers recorded at RNO declined significantly during

FY 2021, ending the year with 1.232 million enplanements. With the rollout of vaccines, lifting travel

restrictions, and the transition back to business as usual in FY 2022, passenger traffic has increased to pre-

pandemic levels in some months, ending the year with 2.080 million enplanements.

Landing fee revenues of $10.585 million increased $1.636 million or 18% from the prior year mainly due

to the recovery of airline activity at RNO. Cargo airlines benefited from the boom of ecommerce during the

pandemic and recorded higher landed weights than pre-pandemic. Landing fees represent approximately

18% of RTAA’s total operating revenues.

2022 2021

$ Change % Change

Landing fees 10,584,517$ 8,948,847$ 1,635,670$ 18%

Concession revenue 15,257,011 9,628,195 5,628,816 58%

Parking and ground transportation 14,004,587 7,361,177 6,643,410 90%

Rentals 15,073,833 15,715,644 (641,811) -4%

Reimbursements for services 3,000,059 1,823,280 1,176,779 65%

Other revenue 145,174 185,773 (40,599) -22%

Total operating revenue 58,065,181$ 43,662,916$ 14,402,265$ 33%

24

MANAGEMENT’S DISCUSSION AND ANALYSIS

Concession revenues of $15.257 million were generated from auto rental, gaming, food and beverage,

merchandising, advertising, and other concessions. They represent 26% of the total operating revenues and

58% higher than FY 2021. Concession revenues recorded in FY 2021 were $1.674 million, which was 15%

below FY 20 results due to the impacts of the COVID 19 pandemic. In August 2021 the Board authorized

the President/CEO to provide temporary financial relief to in-terminal concessionaires: The Paradies Shops,

LLC, SSP America, Inc., MAG US Lounge Management, Traveler Gifts, LLC, and Tahoe Douglas Visitors

Authority through the waiver of monthly minimum annual guarantee (MAG) payments, rents, or reduction

of concession fees through June 30, 2022.

Parking and Ground Transportation revenues of $14.005 million accounted for 23% of total operating

revenues. Parking revenues increased by $6.643 million or 90% above the prior year results. Current

parking rates are $1.00 for the first 30 minutes, $2.00 for the first hour, and an additional $1.00 per hour,

with maximum amounts of $24.00 per day for short-term, $14.00 per day for the long-term garage, and

$10.00 per day for long-term surface lot parking.

Rental revenues of $15.074 million decreased $642 thousand or 4%. The decrease is the result of the year

end airline fee settlement calculation with revenues higher than budget and expenses lower than the budget

estimate.

Reimbursements for services and the other revenue category generated $3.145 million or 5% of total

operating revenues. Reimbursements for services increased $1.177 million or 65% from fiscal year 2021.

Revenues in this category include airline charges to use RTAA’s baggage handling system (BHS). The

BHS fee reflects 100% cost recovery of the direct operating and maintenance costs of the system less any

reimbursement from the Transportation Security Administration (TSA) for direct costs associated with their

screening equipment. Other revenues of $145 thousand include miscellaneous revenues, such as late fees

collected by RTAA, and rebates received.

Operating Expenses

The RTAA’s total operating expenses totaled $46.340 million in FY 2022, an increase of $3.728 million or

9% above the prior year results. The increase is primarily due to the increase of funding allocated to

operating activities after the budget reductions due to the COVID-19 pandemic, as well as contracted

services related to capital projects. Of the total operating expenses, 65% were costs associated with

employee wages and benefits of a workforce of 279 employees as of June 30, 2022. The following is a

summary of expenses (excluding depreciation and amortization) by source for the years ended June 30,

2022, and 2021:

2022 2021

$ Change % Change

Employee wages and benefits 30,348,607$ 30,923,994$ (575,387)$ -2%

Utilities and communications 3,156,581 2,454,099 702,482 29%

Purchase of services 7,405,170 4,887,352 2,517,818 52%

Materials and supplies 2,575,145 2,259,926 315,219 14%

Administrative expenses 2,854,518 2,086,926 767,592 37%

Total Operating Expenses 46,340,021$ 42,612,297$ 3,727,724$ 9%

25

MANAGEMENT’S DISCUSSION AND ANALYSIS

Significant Changes in Operating Expenses for Fiscal Year 2022 versus 2021

Employee salaries, wages, and benefits of $30.349 million decreased $575 thousand or 2% in fiscal year

2022. Personnel related expenses represent approximately 65% of total operating expenses. The following

table outlines the major expense categories within employee salaries, wages, and benefits for the years

ending June 30, 2022, and 2021:

2022 2021 $ Change % Change

Sala

r

ies $21,724,003 $19,400,633 $2,323,370 12%

Overtime, Standby, Holiday Worked 1,645,304 1,162,234 483,070 42%

Employee Benefits 6,979,281 10,361,127 (3,381,846) -33%

Total Employee Wages and Benefits

$30,923,994 $32,120,112 ($1,196,118) -2%

Employee salaries have increased by $2.323 million or 12% from FY 2021. This increase reflects a return

to pre-pandemic operation levels with filling existing open positions. Overtime also increased by $483

thousand. Employee benefits decreased approximately $3.382 million or 33% due largely to decreases of

RTAA’s share of the net pension liability based on the actual results of investments. The net pension

liability and related inflows and outflows of deferred revenue are based on actuarial assumptions at June

30, 2021. During FY 2021 actual results of earnings on investments was significantly larger than

expectations, resulting in a decrease of the net pension liability and RTAA’s related expense. These

expenses are further explained in Note 9 – Pension Plan and Note 11 – Other Post-Employment Benefits

(OPEB).

Utilities and communications expenses of $3.157 million increased $702 thousand or 29% from the prior

year and represents 7% of total operating expenses. This category includes electricity, natural gas, water,

sewer service, telephone, and other utility services.

Purchase of services expense includes professional and technical services and totaled $7.405 million, an

increase of $2.518 million or 52% from the prior year. The increase was primarily due to higher costs

associated with consultant services and contracted services related to capital projects and financial software

conversion and implementation. Purchase of services expense represents 52% of total operating expenses.

Expenses for materials and supplies totaled $2.575 million, an increase of $315 thousand or 14% from the

prior year. Materials and supplies represent 14% of total operating expenses.

The administrative expense category includes travel, training, air service development, insurance, and other

general expenses. In total, the category incurred $2.855 million in cost, an increase of approximately $768

thousand or 37% from the prior fiscal year. This increase reflects increased costs associated with training,

conference sponsorship, insurance premiums, and community outreach.

Non-Operating Revenues and Expenses

The category of non-operating revenues and expenses contains sources and uses of RTAA funding not

directly associated with supporting the operations of the airports or funding intended or restricted for

specific uses. Included in this group are the items following: interest income, Passenger Facility Charges

(PFCs), Customer Facility Charges (CFCs), jet fuel taxes, federal stimulus grants, and interest expense on

RTAA revenue bonds.

26

MANAGEMENT’S DISCUSSION AND ANALYSIS

The following is a summary of non-operating revenues and expenses for the years ended June 30, 2022,

and 2021:

Significant Changes in Non-Operating Revenues and Expenses for Fiscal Year 2022 versus 2021

Interest income consists of interest from leases under GASB 87 of $591 thousand and interest earned on

cash and investments of $655 thousand. Interest income from cash and investments decreased 35% and

loss on the value of investments increased 66% this past fiscal year. Interest rate changes impact RTAA’s

financial position in two ways: 1) revenues will change based on lower or higher interest rates and 2)

investment market values will change positively if rates decline and negatively if rates rise. The impact is

dependent on the overall maturity structure of the investment portfolio. Overall interest rates were low most

of the fiscal year, increasing slightly in the fourth quarter. Reduced rates during the year resulted in lower

investment revenue, due to the reinvestment of maturities at lower replacement yields.

Jet fuel tax revenues are derived from a one cent per gallon of fuel for jet or turbine aircraft sold, distributed,

or used. The tax is collected by Washoe County and remitted to RTAA as outlined in Nevada Revised

Statute (NRS) 365.170. These revenues are used by RTAA to support air service development objectives

and other discretionary expenses. The increase in revenues is due to higher volume of aircraft operations at

RNO.

Federal stimulus grant revenues of $14.483 million increased by $7.424 million in FY 2022. This includes

eligible cost reimbursement from the CARES, CRRSA, and ARPA Acts of $13.887 million. This funding

is permissible for any eligible use of airport revenues. CARES Act reimbursement in fiscal year 2022

included debt service, contracted services, salaries, and wages. RTAA also received funding for concession

rent relief through CRRSA and ARPA of $596 thousand.

Interest expense of approximately $400 thousand increased by $62 thousand or 15% above the previous

year. This increase reflects the additional expenses for prepaid interest due the early retirement of debt.

2022 2021

$ Change % Change

Interest income 1,246,627$ 886,650$ 359,977$ 29%

Gain (loss) on investment valuation (2,737,875) (935,537) (1,802,338) 66%

Passenger facility charge revenue 8,502,997 4,514,399 3,988,598 47%

Customer facility charge revenue 6,350,891 4,954,128 1,396,763 22%

Jet fuel tax revenue 294,018 203,765 90,253 31%

Gain (loss) on sale of capital assets 15,080 41,838 (26,758) -177%

Federal grant revenue 14,483,077 7,059,146 7,423,931 51%

Interest expense (399,857) (337,975) (61,882) 15%

Total Non-Operating revenues 27,754,958$ 16,386,414$ 11,368,544$ 69%

27

MANAGEMENT’S DISCUSSION AND ANALYSIS

CAPITAL ASSETS

RTAA’s investment in capital assets as of June 30, 2022, was $388.633 million, a net increase of $26.778

million or 7%. This increase is primarily due to the debt payoff during the year. Investments in capital

assets include land, construction in progress, improvements, buildings, equipment, and development rights.

The following presents RTAA’s capital assets for the years ended June 30, 2022, and 2021:

Major Capital Asset Events during Fiscal Year 2022

Federal grants funded over $27.686 million of capital projects in FY 2022. Projects included a runway

rehabilitation at RNO, Taxiway B & C design at RNO, RTS Parking Apron, and RTS Taxiway A.

Completed RNO terminal building projects include HVAC upgrades, jet bridge replacement, and a ticketing

hall study. Technology upgrade projects completed this year included financial system replacement and

security system upgrades.

RTAA continued its on-going pavement maintenance program with major projects in the airfield, landside

parking and various tenant properties adding to the value of capital assets. For additional information on

capital assets, see Notes to the Financial Statements, Note 5 – Capital Assets.

DEBT ADMINISTRATION

At June 30, 2022, RTAA had no outstanding debt. During FY 2022, the Authority paid off $12.290 million

in debt comprised of senior lien revenue bonds (Series 2015 Airport Refunding Bond). On September 30,

2015, the proceeds from the 2015 Bond were used to redeem the Airport Revenue Refunding Bonds, Series

2005 (the “Series 2005 Bonds”), which were outstanding as of July 1, 2015, in the amount of $20,940,000,

and the cost of issuance necessary to execute this transaction. The 2015 Bond reflects the remaining

outstanding debt from 1996 bonds issued to construct RTAA’s three story, 2,400 space parking garage, a

new roadway system to accommodate the parking garage, and a passenger skyway to connect the parking

garage to the terminal.

RTAA, unlike most local governments, has no debt limit or maximum debt per capita. RTAA does have a

rate maintenance covenant in its revenue bond resolutions requiring that net pledged revenues equal or

exceed 125% of the bond debt service. For additional information on bonds, see Notes to the Financial

Statements, Note 6 - Long-Term Debt.

2022 2021 $ Change % Change

Capital Assets, not depreciated:

Land 172,449,079$ 172,449,079$ -$ 0%

Construction in progress 49,359,777 40,521,963 8,837,814 22%

Development rights 2,924,038 2,924,038 - 0%

Capital Assets, depreciated, net:

Improvements 105,146,063 101,095,687 4,050,376 4%

Buildings 33,868,706 39,397,653 (5,528,947) -14%

Equipment 24,885,270 19,591,755 5,293,515 27%

Total Capital Assets 388,632,933$ 375,980,175$ 12,652,758$ 3%

28

MANAGEMENT’S DISCUSSION AND ANALYSIS

PASSENGER FACILITY CHARGES (PFCs)

In October 1993, RTAA received approval from FAA to impose a PFC of $3.00 per enplaned passenger.

Collection began January 1, 1994. In May 2001, that amount increased to $4.50 per enplaned passenger

with collection beginning August 1, 2001. For the fiscal year ended June 30, 2022, RTAA collected PFCs,

including interest earnings thereon, totaling $8.503 million, a $3.989 million or 47% increase over the prior

year. This increase is due to a 69% increase in enplanements over FY 2021. PFCs are collected by airlines

on their passengers’ tickets and remitted monthly to RTAA. These funds are spent on a list of projects

reviewed by the airlines in a process prescribed by the FAA. This funding must be segregated from all other

Airport revenues. For further details, see the Summary Schedule of Passenger Facility Charges Collected

and Expended in the Compliance Section of this report.

CUSTOMER FACILITY CHARGES (CFCs)

CFCs are paid by customers utilizing rental cars based at RNO. Implemented in August 2012, the CFCs are

collected and remitted by the rental car companies to RTAA. For the fiscal year ended June 30, 2022, RTAA

collected CFCs, including interest earnings thereon, totaling $6.351 million, a $1.397 million or 22%

increase over the prior year. This increase is due to the increased passenger activity at RNO. They are

designated to fund property management, repairs, and improvements to RTAA-owned rental car facilities.

In addition, they will provide funding for a future Consolidated Rental Car (CONRAC) facility as identified

in RTAA’s current master plan. Beginning July 1, 2020, CFC per rental car transaction day fees increased

to $5.50 from $4.50.

AIRLINE SIGNATORY RATES AND CHARGES

RTAA and the airlines successfully negotiated an airline use and lease agreement effective July 1, 2015,

for a term of five years. In FY 2020, the agreement was extended for three years and includes seven

“signatory airlines” including five passenger and two cargo airlines. The airline agreement establishes the

airline rate setting formula and the airport model is known as a hybrid rate setting formula. In this formula,

the two airports owned and operated by RTAA are divided into six cost centers: Airfield, Terminal Building,

Baggage Handlings System (BHS), Landside (Parking and Ground Transportation), Other, and Reno-Stead

Airport. The Airfield and Terminal Building airline related cost centers are used in the calculation of the

landing fee and terminal rental rate.

Net airfield costs and associated landing fees are established on a cost center residual methodology in which

the signatory airlines bear 100% of the financial risk for the Airfield. The expenditures associated with the

Airfield cost center, which are primarily comprised of operating expenses, debt service, and recovery of

capital projects/equipment with unit costs of less than $300,000, are divided by estimated aircraft landed

weight resulting in a landing fee rate.

In contrast, the terminal building rental rates reflect a commercial compensatory rate setting formula that

places the financial risk of funding terminal building costs with RTAA. The expenditures, which are

primarily comprised of operating expenses, debt service, and recovery of capital project/equipment

expenditures with unit costs of less than $300,000, in the Terminal Building cost center are divided by a

“rentable” space divisor (total terminal space available that is revenue producing and available for lease).

The result of this approach is that the signatory airlines are only responsible for terminal building costs

allocated to airline leased premises and any costs allocated to vacant, concession, or other rentable space is

the financial responsibility of RTAA.

In addition, the current hybrid agreement provides that RTAA’s net available revenues after debt service

are split equally (50%-50%) between the signatory airlines and RTAA through a revenue sharing formula.

29

MANAGEMENT’S DISCUSSION AND ANALYSIS

Revenue sharing is derived by taking the sum of RTAA’s total revenues less total expenses posted to all

costs centers less debt service and other identified requirements. A credit estimate offsets airline terminal

building rents collected during the year with a final airline rates and charges reconciliation and settlement

prepared based on audited year-end results.

The final rates and charges for the signatory airlines are shown below for the fiscal year ended June 30,

2022, and 2021:

Comparing the operating results of airports is difficult. The landing fee and terminal rental rates of airports

are often not comparable because of the different airline operating agreements used to calculate those fees.

As a result, an airport’s impact to signatory airline tenants is benchmarked on a ratio of total fees paid by

the airlines (landing fees and terminal rents), divided by the number of passengers boarding aircraft. RTAA

targets to maintain a reasonable cost structure for the airlines to attract and retain air service to the Reno-

Sparks community. The RNO cost per enplaned passenger for the fiscal year ended June 30, 2022, was

calculated to be $6.21 as compared to $9.17 in the prior year. The chart below presents the history of the

cost per enplaned passenger.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

Faced with the many challenges brought on by the COVID-19 pandemic and economic uncertainty, RTAA

proved its resiliency, and is in a strong financial position entering FY 2022-23. The global and regional

economy is rebounding, and RNO is experiencing above pre-pandemic level summer traffic volumes unlike

many other similar size airports. As we now focus on recovery efforts, we remain committed to ensuring

the wellbeing of our employees, the sustainability of business partnerships and meeting our critical

operational responsibilities with safety being our first and foremost responsibility.

2022 2021 $ Change % Change

Landing Fee Rate

(Per 1,000-pound units) $ 3.04 $ 3.23 ($0.38) 12%

Terminal Rental Rate (Average) (Per

square foot annually) $40.66 $45.74 ($5.08) -11%

30

MANAGEMENT’S DISCUSSION AND ANALYSIS

The greater Reno area’s economic picture has become far more diversified and the growth in recent years

has been significant. The Reno-Tahoe regional area economy is no longer relying solely on tourism and

gaming, as it was at the time of the 2008 great recession. Northern Nevada’s business friendly environment,

proximity to customers, availability of skilled workforce and logistics continues to attract a diverse group

of businesses to the area.

The diversity of industry in Northern Nevada is expected to provide a solid foundation for recovery and

long-term growth following the COVID-19 pandemic. It will also help soften the effects of a potential

recession. Nevada’s June unemployment rate dropped to 4.7% compared to the 29.5% reached at the height

of the pandemic in April 2020 according to the Nevada Department of Employment, Training and

Rehabilitation (DETR). Of the three Metropolitan Statistical Areas (MSA) in Nevada, Reno’s

unemployment rate was the lowest at 3.3%, while the Las Vegas area was at 5.7% and Carson at 3.7% in

June 2022.

The fiscal year 2022-23 Board approved budget is balanced, includes increased funding for mission critical

airport operations, higher revenues, and the usage of federal funding to maintain reasonable signatory

airline rates and charges. As the recovery progresses, we continue to closely monitor airline traffic,

revenues, and expenses and are prepared to make necessary adjustments if the current forecast does not

materialize or are faced with an economic recession.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the financial activity and condition of

RTAA to all having such an interest. Questions concerning any of the information provided in this report

or requests for additional financial information should be addressed to Reno-Tahoe Airport Authority,

Accounting Department, P.O. Box 12490, Reno, NV 89510-2490 or “Ask the Airport” at

[email protected].



31

BASIC FINANCIAL

STATEMENTS

RENO-TAHOE AIRPORT AUTHORITY

STATEMENT OF NET POSITION

JUNE 30, 2022

ASSETS

CURRENT ASSETS

Unrestricted Assets:

Cash and cash equivalents 12,924,586$

Investments 68,254,001

Accounts receivable, net 4,805,216

Lease receivable 8,242,115

Interest receivable 174,662

Inventory 905,754

Other current assets 772,648

Total Unrestricted Assets 96,078,982

Restricted Assets:

Cash and cash equivalents 30,944

Investments 28,398,664

Grants receivable 1,482,845

Interest receivable 65,600

Total Restricted Assets 29,978,053

Total Current Assets 126,057,035

NON-CURRENT ASSETS

Capital Assets:

Non-depreciable 224,732,894

Depreciable 830,511,877

Less accumulated depreciation and amortization (666,611,838)

Total Capital Assets 388,632,933

Other Assets:

Road credits 1,383,599

Lease receivable 33,195,211

Total Other Assets 34,578,810

Total Non-Current Assets 423,211,743

Total Assets 549,268,778

DEFERRED OUTFLOWS OF RESOURCES

Pension contributions after measurement date 2,819,460

Pension difference between actual and proportionate

share of contributions 301,778

Pension changes in actuarial assumptions 8,156,060

Pension difference between expected and actual pension

experience 2,721,075

OPEB contributions after measurement date 127,166

Total Deferred Outflows of Resources 14,125,539

Total Assets and Deferred Outflows of Resources 563,394,317

Continued

32

RENO-TAHOE AIRPORT AUTHORITY

STATEMENT OF NET POSITION

JUNE 30, 2022

LIABILITIES

CURRENT LIABILITIES

Payable from Unrestricted Assets:

Accounts payable 6,131,855$

Construction contracts payable 2,198,705

Rents received in advance 2,027,604

Accrued payroll and compensated absences 1,593,458

Total current unrestricted assets 11,951,622

Payable from Restricted Assets:

Construction contracts payable 101,202

Total restricted current liabilities 101,202

Total Current Liabilities 12,052,824

NON-CURRENT LIABILITIES

Compensated absences, net of current portion 1,270,995

Deposits 899,278

Reclamation liability 564,844

Total OPEB liability 1,939,121

Net pension liability 24,565,172

Total Non-Current Liabilities 29,239,410

Total Liabilities 41,292,234

DEFERRED INFLOWS OF RESOURCES

Pension difference between actual and projected earnings on

plan investments 20,044,398

Pension difference between actual and expected pension experience 172,881

Pension difference between actual and proportionate share

of contribution 1,579,990

Leases 41,180,037

Total Deferred Inflows of Resources 62,977,306

NET POSITION

Net investment in capital assets 388,632,933

Restricted for:

Operations and maintenance reserve 7,532,989

Renewal and replacement reserve 770,498

Passenger facility charge projects 20,160,846

Other reserve purposes 30,949

Total Restricted 28,495,282

Unrestricted 41,996,562

Total Net Position 459,124,777

Total Liabilities, Deferred Inflows of Resources, and Net Position 563,394,317$

See accompanying notes to financial statements.

33

RENO-TAHOE AIRPORT AUTHORITY

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN

NET POSITION FOR THE YEAR ENDED JUNE 30, 2022

OPERATING REVENUES

Landing fees 10,584,517$

Concession revenue 15,257,011

Parking and ground transportation 14,004,587

Rentals 15,073,833

Reimbursements for services 3,000,059

Other revenue 145,174

Total operating revenues 58,065,181

OPERATING EXPENSES

Employee wages and benefits 30,348,607

Utilities and communications 3,156,581

Purchase of services 7,405,170

Materials and supplies 2,575,145

Administrative expenses 2,854,518

Total operating expenses 46,340,021

OPERATING INCOME BEFORE DEPRECIATION

AND AMORTIZATION 11,725,160

Depreciation and amortization expense 25,079,112

OPERATING INCOME (LOSS) (13,353,952)

NON-OPERATING REVENUES (EXPENSES)

Interest income 1,246,627

Gain (Loss) on value of investments (2,737,875)

Passenger facility charge revenue 8,502,997

Customer facility charge revenue 6,350,891

Jet fuel tax revenue 294,018

Gain on sale of capital assets 15,080

Federal grant revenue 14,483,077

Interest expense (399,857)

Total non-operating revenues (expenses) 27,754,958

INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 14,401,006

CAPITAL CONTRIBUTIONS (FEDERAL) 27,686,032

CHANGE IN NET POSITION 42,087,038

NET POSITION, BEGINNING OF YEAR 417,037,739

NET POSITION, END OF YEAR 459,124,777$

See accompanying notes to financial statements.

34

RENO-TAHOE AIRPORT AUTHORITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers 58,641,436$

Cash paid to employees and for benefits (33,731,727)

Cash paid to suppliers (14,553,707)

Net cash provided by operating activities 10,356,002

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Federal grants received 13,209,077

Jet fuel tax revenue 294,018

Net cash provided by noncapital financing activities 13,503,095

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Capital contributions (federal) 27,845,338

Passenger facility charge revenue 8,502,997

Customer facility charge revenue 6,350,891

Acquisition and construction of capital assets (37,267,116)

Proceeds from sale of capital assets 15,080

Principal paid on bonds (12,290,000)

Interest paid on bonds (568,844)

Net cash provided by (used in) capital and related

financing activities (7,411,654)

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts of interest 1,226,258

Purchase of investments (116,397,285)

Sale of investments 99,488,157

Net cash provided by (used in) investing activities (15,682,870)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 764,573

CURRENT AND RESTRICTED CASH AND CASH

EQUIVALENTS, BEGINNING OF YEAR 12,190,957

CURRENT AND RESTRICTED CASH AND CASH

EQUIVALENTS, END OF YEAR 12,955,530$

Continued

35

RENO-TAHOE AIRPORT AUTHORITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2022

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH

PROVIDED BY OPERATING ACTIVITIES

Operating (loss) income (13,353,952)$

Adjustments to reconcile operating (loss) income to net cash

provided by operating activities:

Depreciation and amortization 25,079,112

(Increase) Decrease in Assets:

Accounts receivable, net 196,186

Lease receivable (41,437,326)

Inventory (113,509)

Other current assets 251,218

Increase (Decrease) in Liabilities:

Accounts payable 1,301,952

Rents received in advance 296,280

Accrued payroll 223,623

Deposits and unearned revenues 341,079

Total OPEB liability and related deferred outflows of resources (72,006)

Net pension liability and related deferred outflows

and inflows of resources (3,534,753)

Lease deferred inflows of resources 41,180,037

Reclamation liability (1,938)

Net cash provided by operating activities 10,356,002$

Noncash activities:

Capital assets included in construction contracts payable 2,299,907$

Capital Contributions

Total Capital Contributions 27,686,032$

Grants Receivable (June 30, 2022 and 2021) (591,945)

Grants Receivable (June 30, 2021 and 2020) 1,482,845

28,576,932$

See accompanying notes to financial statements.

36

NOTES TO THE

FINANCIAL STATEMENTS

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



1.

Organization and Reporting Entity

A.

Organization

The Reno-Tahoe Airport Authority (“RTAA” or “Authority”) (formerly the Airport Authority of

Washoe County) was created on July 1, 1977, by an act of the Nevada Legislature for the purpose of

operating Reno-Tahoe International Airport (RNO) and Reno-Stead Airport (RTS).

B.

Reporting Entity

RTAA is an independent reporting entity and not a component unit of another government. This

conclusion is based on the following criteria:

i.

Composition of the Board.

The governing boards of the following jurisdictions appointed nine members to the Board of

Trustees

as follows: (1) four members by the City of Reno, (2) two members by the City of

Sparks, (3) two

members by Washoe County, and (4) one member by the Reno-Sparks

Convention & Visitors

Authority (RSCVA). The Board directs the President/CEO, who is

responsible for management

and staffing of the RTAA departments. RTAA is responsible

for the day-to-day operations at the

two airports.

ii.

Accounting for Fiscal Matters.

RTAA is responsible for reviewing, approving, and revising its budget. The Authority is

solely

responsible for financing the entity’s deficits and has sole control of its surplus funds,

restricted only

by the RTAA’s Bond Resolutions and underlying Lease and Use Agreements.

RTAA collects revenues, controls disbursements, and has title to all assets. RTAA establishes

fees and

charges and negotiates contracts with commercial enterprises.

2.

Summary of Significant Accounting Policies

A.

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting in

accordance with accounting principles generally accepted in the United States of America (GAAP)

as applicable to governmental units. RTAA uses the economic resources measurement focus,

whereby revenues and expenses are recognized in the period earned or incurred, regardless of when

the related cash flows take place. All transactions are accounted for in a single enterprise fund.

Enterprise funds account for the following activities:

i.

Financed and operated in a manner similar to private business enterprises – where the intent of the

governing body is that the costs of providing goods or services to the general public on a

continuing basis be financed or recovered through user charges; or



37

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



ii.

The governing body has decided that periodic determination of revenues earned, expenses

incurred, or net income is appropriate for capital maintenance, public policy, management control,

accountability, or other purposes.

Revenues from landing fees, rents, parking operations, and other miscellaneous sources are reported

as

operating revenues. Transactions, which are capital, financing or investing related, are reported

as

non-operating revenues, including Passenger Facility Charges (PFC) and Customer Facility Charges

(CFC).

Expenses from employee wages and benefits, purchases of services, materials and supplies, and other

miscellaneous expenses are reported as operating expenses. Interest expense and financing costs are

reported as non-operating expenses.

B.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to

make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly,

actual results could differ from those estimates.

C.

Budgets

RTAA adheres to the Local Government Budget and Finance Act established by Nevada state statute.

The filing deadlines and procedures during fiscal year 2021-2022 were as follows:

i.

On or before April 15, the RTAA files a preliminary operating budget with the State Department

of Taxation.

ii.

A public hearing on the proposed budget with the Board of Trustees on the Thursday following

the third Monday in the month of May.

iii.

On or before June 1, the final budget is adopted by a majority vote of the Board of Trustees.

iv.

The budget is adopted on the accrual basis. Actual operating and non-operating expenses

(excluding depreciation) may not exceed budgeted appropriations. Budget augmentations that

change the total revenues or expenses must be approved by a resolution of the Board of Trustees

and filed with the Nevada Department of Taxation. Unexpended appropriations lapse at year-end.

D.

Cash, Cash Equivalents, and Investments

RTAA considers all liquid investments (including restricted assets) with an original maturity of three

months or less to be cash equivalents. Investments are measured at fair value.

E.

Inventory

Inventory is valued by the weighted average method. Weighted average measures the total cost of

items in inventory divided by the total number of units available for issuance. Inventory items are

recorded as assets when purchased and expensed as consumed.

38

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



F.

Capitalization of Interest

Through June 30, 2020, RTAA capitalized, as a part of the historical cost of constructing assets for

its own use, a portion of

the net interest cost incurred during the construction period. The Authority

implemented Governmental Accounting Standards Board (GASB) Statement No. 89, Accounting for

Interest Cost Incurred before the End of a Construction Period, and no interest was capitalized for the

year ended June 30, 2022.

G.

Deferred Outflows/Inflows of Resources

In addition to assets and liabilities, the statement of net position may report a separate section for

deferred outflows of resources and deferred inflows of resources, respectively. These separate

financial statement elements represent the consumption or addition to net position that applies to a

future reporting period(s) and as such will not be recognized as flows of resources

(expenses/revenues) until then.

The statement of net position contains items relating to deferred outflows and deferred inflows

associated with

GASB Statement No. 68, Accounting and Financial

Reporting for Pensions, GASB

Statement No. 71, Pension Transition for Contributions Made

Subsequent to the Measurement Date,

and GASB Statement No. 87, Leases. A description of the deferred outflow and inflow items is as

follows:

 Pension - contributions after measurement date for pensions and Other Postemployment Benefits

(OPEB). These contributions are

made after the measurement date through the fiscal year end

resulting in a cash outlay not yet recognized under GASB 68. This amount is deferred and

recognized in the following fiscal year. This item is presented as a deferred outflow of

resources.

 Pension - difference between actual and proportionate share of contributions. This represents

the unamortized difference between actual and proportional contributions to the defined benefit

pension plan and

increases in the RTAA’s allocation share as provided in the schedule of

employer allocations

for the year ending June 30, 2021.

 Pension - changes in actuarial assumptions. These amounts represent the difference resulting from

a change in assumptions used to measure the underlying net pension, OPEB liability, or asset.

These differences are deferred and recognized over the estimated average remaining lives of all

members determined as of the beginning of the measurement period. This item can be presented

as both a deferred outflow and deferred inflow of resources.

 Pension - difference between expected and actual pension experience. These amounts

represent

the difference in expected and actual pension or OPEB experience. These differences

are deferred

and recognized over the estimated average remaining lives of all members determined as of the

beginning of the measurement period. This item can be

presented as both a deferred outflow

and deferred inflow of resources shown as net if there are unamortized balances for categories.



39

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



 Pension - difference between actual and projected earnings on plan investments. These

amounts represent the difference in projected and actual earnings on pension plan assets.

The

differences are deferred and amortized over a closed five-year period. This item can

be presented

as both a deferred outflow and deferred inflow of resources and is combined

annually as a

single net unamortized balance.

 Leases – value of the lease receivable and prepayments. These amounts represent the present

value of future lease payments in addition to any payments received at or before the

commencement of the lease term that relates to future periods. The deferred inflow will be

amortized over the life of the lease.

See Note 8 - Leases, Note 9 - Pension Plan, and Note 13 - Other Postemployment Benefits (OPEB)

for additional information on the deferred outflows and inflows of resources.

H.

Compensated Absences

RTAA accounts for compensated absences by accruing a liability for employees’ compensation of

future absences. Employees accrue vacation in varying amounts based on classification and length of

service.

Additionally, certain employees are allowed compensated time off in lieu of overtime

compensation

and/or working on holidays. Vacation pay and compensatory time vests as earned and

sick pay vests

after five years of service at the rate of 50% available for payout at termination for

certain

represented employees. After 880 hours, sick pay also vests for certain represented employees.

The liability for the compensated absences is included in both the current and non-current portion of

accrued payroll. As of June 30, 2022, liabilities related to compensated absences were $2,330,697.

I.

Landing Fees, Terminal Building Rents, and Baggage Handling System (BHS) Charges

Landing fees, terminal rents, and BHS charges are set based and collected on estimates of airline

activity, revenues, and expenses. The actual landing fees, terminal rental rates, and BHS charges due

from the signatory airlines are calculated based on actual year-end results in accordance with the

Airline

Use and Lease Agreement (AULA). Any over-collections and under-collections are netted

and recorded on

the Statements of Net Position as an accounts receivable or accounts payable.

J.

Net Position

The following categories comprise the RTAA’s net position:

i.

Net Investment in Capital Assets – Capital assets, net of accumulated depreciation and outstanding

principal balances of debt attributable to the acquisition, construction, or improvement of those

assets.

ii.

Restricted – Net Position that has external constraints placed on it by creditors, grantors,

contributors, or laws or regulations of other governments, or imposed by law through contribution

provision of enabling legislation.

iii.

Unrestricted – Unrestricted net position consists of net position that does not meet the definition

of “restricted” or “net investment in capital assets.”



40

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



At times, RTAA will fund outlays for a particular purpose from both restricted and unrestricted

resources. It is the RTAA’s policy to deplete restricted net position, if permitted, before unrestricted

net position is applied.

K.

Passenger Facility Charge (PFC) Revenue

Currently, RTAA has approval from the Federal Aviation Administration (FAA) to impose

and use a PFC of $4.50 per enplaned

passenger. PFC collections fund FAA approved projects to

improve or renew passenger safety, conveyance, or related facilities. The airlines collect and remit

PFC

revenues monthly to RTAA. These revenues are recognized by RTAA as non-operating revenues.

L.

Customer Facility Charge (CFC) Revenue

Effective August 2012, RTAA implemented a $1.25 CFC per

transaction day on each individual

vehicle rental collected by each participating rental car lessee. On July 1, 2019, the rate increased

to $4.50 and on July 1, 2020, increased to $5.50. CFC revenues fund the following projects: (1)

renewal

and replacement improvements to the Quick Turnaround (QTA) Facility and the Service

Facility

Area, (2) the on-going overhead and maintenance of the QTA, and (3) the building of a future

consolidated rental car facility. In addition, $0.11 per rental day of

CFC receipts reimburse RTAA

to cover reasonable costs associated with accounting,

administering, and managing the CFC program.

The rental car companies operating at RNO collect and remit CFC revenues monthly to RTAA. These

revenues are classified as non-operating revenues.

M.

Capital Contributions

The FAA’s Airport Improvement Program (AIP) funds a

significant portion of eligible costs for

airport capital improvements along with matching funds

provided by RTAA or through the PFC

program. In addition, the Transportation Security

Administration (TSA) funds certain approved

capital projects associated with passenger and luggage

screening.

Capital funding provided under government grants and agreements are considered earned as the

related allowable expenses are incurred. Grants and related agreements for the acquisition of land,

acquisition and construction of property, and certain types

of equipment are reported in the

Statements of Revenues, Expenses and Changes in Net Position,

after non-operating revenues and

expenses, as capital contributions.

N.

Regional Road Impact Fee Credits

The regional road impact fee is a one-time assessment to pay for new roads or improvements to

existing roads necessary to serve traffic from a new development. Payment of this fee is typically

required upon issuance of a building permit. RTAA owns credits for the fees and can use them

as

needed or sell them to others until the credits expire June 26, 2033. The value of these credits was

determined by Washoe County, who provided the credits to RTAA.

41

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



O. Recent Accounting Pronouncements Adopted/Implemented:

During the year, RTAA adopted the following new GASB Statements:

 GASB Statement No. 87, Leases. This Statement, originally issued in June 2017, requires the

recognition of certain leased assets and liabilities for leases that previously were classified as

operating leases and recognize them as inflows of resources or outflows of resources based on the

payment provisions of the contract. It establishes a single model for lease accounting based on

the foundational principle that leases are financings of the right to use an underlying asset. This

Statement had a material effect on the financial statement of the Authority. For a detailed

discussion please refer to Note 8 – Leases.

 GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction

Period. This Statement requires that interest cost incurred before the end of a construction period

be recognized as an expense in the period in which the cost is incurred for financial statements

prepared using the economic resources measurement focus. As a result, interest cost incurred

before the end of a construction period will not be included in the historical cost of a capital asset

reported in a business-type activity or enterprise fund. This Statement did not have a material

effect on the financial statements.

 GASB Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance

comparability in accounting and financial reporting and to improve the consistency of

authoritative literature by addressing practice issues that have been identified during

implementation and application of certain GASB Statements. This Statement did not have a

material effect on the financial statements.

 GASB Statement No. 93, Replacement of Interbank Offered Rates. The objective of this

Statement is to address accounting and financial reporting implications that result from the

replacement of an IBOR. This statement did not have an effect on the financial statements.

 GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial

Reporting for Internal Revenue Code (IRC) Section 457 Deferred Compensation Plans. The

objective of this statement is to improve the reporting post-employment benefit plans for primary

governments with component units. This Statement did not have an effect on the financial

statements.

 GASB Statement No. 98, The Annual Comprehensive Financial Report. This Statement

establishes the term annual comprehensive financial report and its acronym ACFR. That new term

and acronym replace instances of comprehensive annual financial report and its acronym in

generally accepted accounting principles for state and local governments. This Statement did not

have a material effect on the financial statements.



42

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



In addition, GASB has issued the following statements that have not yet been implemented by RTAA:

 GASB Statement No. 91, Conduit Debt Obligations.

 GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability

Payment Arrangements.

 GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

 GASB Statement No. 99, Omnibus 2022.

 GASB Statement No. 100, Accounting Changes and Errors – An Amendment of GASB Statement

No. 62.

 GASB Statement No. 101, Compensated Absences.

RTAA will continue to evaluate GASB Statements and determine if these statements will have a

financial impact and require implementation in future reporting periods.

3.

Cash, Cash Equivalents, and Investments

RTAA accounts for its investments at fair value. Cash, Cash Equivalents, and Investments consist

of the following as of June 30, 2022:

The balance of cash and cash equivalents as of June 30, 2022, was $12,955,531. Restricted cash, cash

equivalents, and investments represent funds deposited with third-party custodians, which are

restricted as to use pursuant to the revenue bond resolutions as discussed in Note 6 – Long-Term

Debt. The resolutions also impose limitations as to the disposition of related interest income.

Cash and Cash Equivale nts :

12,955,530$

Investments:

State of Nevada Local Government Pool 26,416,580

US Government Agency Securities 55,865,882

Corporate Securities 14,370,203

Total Investments 96,652,665

Total Cash, Cash Equivalents, Investments 109,608,195

Less: Unrestricted Cash, Cash Equivalents, Investments (81,178,587)

Total Re stricte d Cash, Cash Equivalents, Investments

28,429,608$

43

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



GASB Statement No. 72, Fair Value Measurement and Application, defines fair value, establishes a

framework for measuring fair value and provides a fair value hierarchy that prioritizes the inputs to

valuation techniques used to measure fair value as follows: Level 1 inputs are unadjusted quoted

prices for identical assets or liabilities in active markets; Level 2 inputs are other observable inputs;

Level 3 inputs are unobservable.

The estimated fair values of the RTAA’s U.S. Treasury obligations, commercial paper, notes, bonds,

and other obligations issued by U.S. Corporations are based on quoted market prices provided by

recognized broker dealers (Level 1 inputs). The estimated fair value of U.S. Agency securities is

based on a matrix pricing model that maximizes the use of observable inputs for similar securities as

provided by recognized broker dealers (Level 2 inputs). Below is the categorization of the RTAA’s

total cash, cash equivalents, and investments as of June 30, 2022, by fair market value using the

categories of relative reliability:

Investment Policies

In accordance with Nevada Revised Statute (NRS) 355 Public Investments, the RTAA’s Bond

Resolution and Investment Policy, RTAA manages its exposure to interest rate risk by regular

evaluation of the RTAA’s cash position to determine the amount of short and long-term funds available

for investment within the context of the entire portfolio and its cash flow and liquidity needs. By

purchasing a combination of shorter term and longer-term investments and timing their maturities,

RTAA meets its cash flow and liquidity needs. RTAA uses specific identification for calculating

unrealized gains or losses for investment valuation.

Total Cash,

Cash

Equivalents,

and

Investments

Quoted Prices

in Ac tive

Markets for

Identical

Assets

Significant

Other

Observable

Inputs

Significant

Unobservable

Inputs

June 30, 2022 (Level 1) (Level 2) (Level 3)

Investments by Fair Value Level:

US Agencies 24,535,198$ -$ 24,535,198$ -$

US Treasury Notes 31,330,684 31,330,684 - -

Corporate Securities 14,370,203 - 14,370,203 -

Total Investments by Fair Value Level 70,236,085$ 31,330,684$ 38,905,401$ -$

Investments at Net Asset Value (NAV):

State of Nevada Local Government Pool 26,416,580

Total Investments at Net Asset Value (NAV) 26,416,580

Cash:

Collateralized Bank Deposits 12,955,530

Total Cash, Cash Equivalents,

and Inve s tments

109,608,195$

44

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Included in the RTAA’s investment portfolio as of June 30, 2022, are the following statutorily approved

investments:

 Demand Deposits, Time and Savings Deposits including Negotiable Order of Withdrawal

(NOW) accounts. They are issued by insured commercial banks, credit unions or saving and

loan associations, either within the limits of insurance provided by an instrumentality of the

United States and/or collateralized as required under the Nevada pooled collateral program

(NRS 356).

 US Government Agency Securities (Mortgage-Backed Securities). These securities are issued

by a U.S. government-sponsored agency with backing by the federal government, but not

guaranteed since the agencies are private entities. Such agencies have been set up in order to

allow certain groups of people to access low-cost financing, e.g. home buyers, farmers, and

students. The RTAA’s investments include Federal National Mortgage Association, Federal

Home Loan Banks, Federal Home Loan Mortgage Corporation, and Federal Farm Credit

Banks.

 US Treasury Notes. These notes are issued by the United States government in order to pay for

government projects. They are backed by the U.S. government making them low risk. Interest

payments on the notes are made every six months until maturity which is usually not less than

one year or more than seven years.

 Certificate of Deposit (CD). A CD is a time deposit offered by a financial institution. The

Federal Deposit Insurance Corporation (FDIC) insures CDs similar to savings accounts. They

are different from savings accounts in that the CD has a specific, fixed term (often three months,

six months, or one to five years), and, usually, a fixed interest rate. The FDIC provides deposit

insurance, which guarantees the safety of deposits in member banks, currently up to $250,000

per depositor per bank.

 State of Nevada Local Government Investment Pool (LGIP). Investment of the LGIP is a

function performed by the Office of the State Treasurer pursuant to NRS. In addition to

investing the assets of the LGIP as prescribed by law, with regular oversight provided by the

State Board of Finance, an investment policy also controls the parameters used to invest pool

assets. Investment in the LGIP is carried at fair value, which is the same as the value of pool

shares. By pooling funds, participating local governments benefit from economies of scale,

full-time portfolio management, diversification, and liquidity. The external investment pool is

not registered with the Securities and Exchange Commission (SEC) as an investment company.

The LGIP investment policy allows for investments in bankers’ acceptances, commercial paper,

corporate notes, money market funds, negotiable certificates of deposit, repurchase agreements, tax-

exempt municipal bonds, time certificates of deposit, U.S. Treasury securities, U.S. agency securities,

and asset-backed securities, with the objective of preserving the principal investment and providing a

competitive return.

45

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



The fair value of the investment in this type has been determined using a Net Asset Value (NAV)

calculation. The NAV is calculated daily by dividing the total value of the securities and other assets,

less any liabilities, by the total outstanding shares of the fund. RTAA may withdraw funds from the

pool upon written notice and LGIP shall comply at the first reasonable opportunity. However, the LGIP

may charge RTAA any penalty or loss of interest resulting from the withdrawal of funds, if necessary,

to meet the request. RTAA has no unfunded commitments as of June 30, 2022.

In addition, NRS 355.171 provides the following additional authorized investments for counties and

school districts with county populations greater than 100,000 (Washoe County) and city governments

with city populations greater than 150,000:

A.

Notes, bonds, and other unconditional obligations for the payment of money issued by

corporations organized and operating in the United States that:

i.

Are purchased from a registered broker-dealer;

ii.

At the time of purchase, have a remaining term to maturity of no more than five

years;

iii.

Are rated by a nationally recognized rating service as “A” or its equivalent, or

better;

iv.

Such investments must not, in aggregate value, exceed 20% of the total portfolio

as determined on the date of purchase; and

v.

Not more than 25% of such investments may be in notes, bonds and other

unconditional obligations issued by any one corporation.

B.

Collateralized mortgage obligations that are rated by a nationally recognized rating

service as

“AAA” or its equivalent.

C.

Asset-backed securities that are rated by a nationally recognized rating service as “AAA”

or its

equivalent.



Custodial Credit Risk

Custodial credit risk is the risk that in the event of the failure of a depository financial institution, a

government will not be able to recover its deposits or will not be able to recover collateral securities

that are in the possession of an outside party. Any deposits in excess of FDIC Insurance, if applicable,

are held in the financial institution’s name. RTAA has no investment securities exposed to custodial

credit risk in the event of the failure of the counter party to a transaction.

46

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Interest Rate Risk

As of June 30, 2022, the RTAA’s cash, cash equivalents and investments have the following

maturity distributions:

Credit Risk

State statutes, the RTAA’s revenue bond resolutions and the RTAA’s investment policy authorize

investments in direct obligations of, or obligations guaranteed by the United States of America.

RTAA may also invest in commercial paper (rated A-1 or better by Standard & Poor’s or P-1 by

Moody’s Investor Services) or interests in short-term investment trust funds restricted to the

investment obligations described above.

The RTAA’s investment policy also permits investment in the State of Nevada LGIP and in deposit

accounts with

financial institutions collateralized under the State of Nevada Pooled Collateral

Program. This state

sponsored program provides 102% of collateral for any deposit in a participating

financial institution, above FDIC insurance protection. The collateral is composed of US Treasury

Obligations

and US Agency Securities. The LGIP is unrated external investment pools subject to

NRS 355.171 Public

Investment statutory requirements on authorized and prohibited investments.

At June 30, 2022, Standard & Poor’s had rated US Government Agency Securities (mortgage-

backed securities) as AA+ and the Fidelity Government Fund 57 (money market funds) as AAA.

Concentration of Credit Risk

Concentration of credit risk is the risk of loss attributed to the magnitude of the RTAA’s investment

in a single issue. RTAA places no limit on the amount RTAA may invest in any one issuer. As of

June 30, 2022, the following investments equaled or exceeded 5% of the RTAA’s total cash, cash

equivalents and investments:

0 to 1 Month 1 to 12 Months 1 to 2 Years 2 to 3 Years 3 to 5 Years Total

Cas h 12,955,530$ -$ -$ -$ -$ 12,955,530$

LGIP - 26,416,580 - - - 26,416,580

Securities:

US Treasury - 10,656,127 13,878,477 6,796,080 - 31,330,684

US Government Agency - 6,090,771 18,444,427 - - 24,535,198

Corporate - - 2,949,690 9,748,963 1,671,550 14,370,203

Total 12,955,530$ 43,163,478$ 35,272,594$ 16,545,043$ 1,671,550$ 109,608,195$

Investment Types 2022

Local Government Investment Pool 24%

We lls Fargo Collaterized Deposit 12%

US Agencies 22%

US Treasuries 29%

Corporate Securities 13%

Total 100%

47

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



4.

Accounts and Grants Receivable

The following amounts represent receivables due to RTAA at June 30, 2022:

The grants receivable in the accompanying Statements of Net Position represent reimbursements due

for project costs under the FAA and TSA compliance audit by the RTAA’s independent auditor.

However, RTAA believes that the receivable amounts recorded result from qualified expenses and,

accordingly, an allowance for doubtful accounts is not required.

5.

Capital Assets

Capital assets are stated at historical cost and include property, equipment, and capitalized expenses

that substantially increase the useful lives of existing assets. The RTAA’s policy is to capitalize assets

with an initial cost of $5,000 or more and an estimated useful life of more than one year.



Accounts and Grants Receivable 2022

Current, Unrestricted:

Accounts Receivable 4,984,216$

Less: Allowance for uncollectable (179,000)

Net Accounts Receivable 4,805,216

Grants Receivable, Restricted 1,482,845

Total Current Accounts and Grants Receivable 6,288,061$

48

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Capital asset balances and changes for the year ended June 30, 2022, are as follows:

The straight-line method at various rates allocates the costs of property and equipment over the useful

lives of assets for depreciation. The estimated lives by general classification are as follows:



Years

Improvements 5-30

Buildings 3-30

Equipment 3-15

Development rights, which preclude residential development near RNO, are recorded at cost.

Development rights, which prevent the construction of residential homes on property adjacent to

RNO, are a condition of land ownership that goes on into perpetuity.



Balance Additions Deletions Balance

July 1, 2021 and Transfers and Transfers June 30, 2022

Capital Assets, not depreciated:

Land 172,449,079$ -$ -$ 172,449,079$

Construction in progress 40,521,963 37,121,919 (28,284,105) 49,359,777

Development rights 2,924,038 - - 2,924,038

Total Capital Assets, not depreciated 215,895,080 37,121,919 (28,284,105) 224,732,894

Capital Assets, depreciated:

Improvements 426,455,667 19,950,757 (46,380) 446,360,044

Buildings 289,439,198 170,853 - 289,610,051

Equipment 85,862,836 8,818,826 (139,880) 94,541,782

Total Capital Assets,depreciated: 801,757,701 28,940,436 (186,260) 830,511,877

Less accumulated depreciation for:

Improvements (325,359,980) (15,854,001) - (341,213,981)

Buildings (250,041,545) (5,699,800) - (255,741,345)

Equipment (66,271,081) (3,525,311) 139,880 (69,656,512)

Total accumlated depreciation: (641,672,606) (25,079,112) 139,880 (666,611,838)

Total Capital Assets, net 160,085,095 3,861,324 (46,380) 163,900,039

Net Capital Assets 375,980,175$ 40,983,243$ (28,330,485)$ 388,632,933$

49

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



6.

Long-Term Debt

The changes in long-term debt for the year ended June 30, 2022, are as follows:

Bond Resolution

The revenue bond resolution established certain cash and investments sub-accounts (referred to as

“Funds”). These Funds provide accountability for bond proceeds and pledged revenues to assure

adherence to restrictions on expenses. Gross Revenues are defined as all income and revenues

received or accrued under generally accepted accounting principles derived directly or indirectly by

RTAA from the operation and use of and otherwise pertaining to the Airport System, or for any service

rendered by RTAA in the operation thereof. Gross revenues are deposited at least weekly in the

Revenue Fund. Operation and maintenance expenses are paid from these revenues. The remaining

funds are applied monthly, as outlined in the Bond Resolution, in the following amounts and order of

priority:

 Bond Fund Interest and Principal Accounts – deposited in amounts sufficient to meet the next

required debt service payment on the revenue bonds.

 Operating and Maintenance Reserve Fund – from amounts remaining after the above allocations

and the payment of debt service on any subordinate securities. This fund receives an allocation in

the amount necessary to reinstate over a one-year period a minimum reserve of 17% or two

months of the RTAA’s currently budgeted operation and maintenance expenses. RTAA's airline

agreement allows for the amount necessary to satisfy the two month O&M reserve fund be

included in the airline rates and charges calculation. The reserve fund requirement is calculated

annually based on the adopted budget.

 Renewal and Replacement Fund – $10,000 per month until a specified maximum amount

(currently $780,000 but not less than $600,000) determined by RTAA is accumulated as an

emergency capital account.

 Remaining funds are transferred then to the RTAA’s Special Fund in an amount aggregating

35% of annual gaming concession revenues.

 Any remaining funds are transferred to the General Purpose Fund, to be used for additional

construction, maintenance, or other Airport obligations.



Balance Principal Balance

July 1, 2021 New Debt Repayment June 30, 2022

Revenue Bonds:

Series 2015 Bonds 12,290,000$ -$ (12,290,000)$ -$

Total Revenue Bonds 12,290,000 - (12,290,000) -

Less: Current Portion (1,910,000) - - -

Long-term debt: 10,380,000$ -$ (12,290,000)$ -$

50

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Pursuant to the Bond Resolution, the Revenue Fund, the Operation and Maintenance Fund, the

Operation and Maintenance Reserve Fund, the Renewal and Replacement Fund, the Special Fund,

and the General Purpose Fund may be held by RTAA. The Bond Fund and all accounts therein are

held by a commercial bank who serves as the Paying Agent and Trustee.

As the Authority has no outstanding debt as of June 30, 2022, and therefore does not require a Bond

Service Reserve Fund under the existing bond resolutions, RTAA may include separate debt service

reserve funds, created for individual series of parity securities issued, if required by the supplemental

instrument authorizing the issuance of such series of parity securities.

The revenue bond resolutions require RTAA to meet a rate maintenance covenant, whereby its annual

revenues, after deducting operation and maintenance expenses and 35% of gaming concession

revenues, must equal at least 125% of the revenue bond debt service requirement to be paid from such

revenues. Agreements with airlines provide for this coverage and the rate maintenance covenant

continues to be met for the year ended June 30, 2022, as there are no debt service requirements.

Series 2015 Bond

On September 30, 2015, RTAA issued the "Reno-Tahoe Airport Authority, Nevada, Airport Revenue

Refunding Bond, Series 2015" (the "2015 Bond"). The proceeds from the bond sale were used to

redeem the current Airport Revenue Refunding Bonds, Series 2005 (the “Series 2005 Bonds”), which

were outstanding as of July 1, 2015, in the amount of $20,940,000, and the cost of issuance necessary

to execute this transaction.

The Series 2015 Bond is a direct loan of $20,690,000 secured through a Request for Proposals (RFP)

process issued on July 9, 2015, to numerous banks and financial lending organizations. Upon review

of the submitted proposals, Compass Mortgage Corporation, an Alabama Corporation and a

subsidiary of BBVA Compass, provided the most favorable business terms and conditions.

On December 20, 2021, the Series 2015 Bond was paid in full. Fees related to the early termination

of debt were $265,854. Interest paid on this debt was $302,990 and interest expense for the current

fiscal year was $134,003.

7.

Non-Current Liabilities

Other long–term liability activity for the year ended June 30, 2022, is summarized below:

Balance Additions Deletions Balance

July 1, 2021 and Transfers and Transfers June 30, 2022

Compensated absences 2,312,166$ 865,858$ (847,327)$ 2,330,697$

Deposits 558,199 443,060 (101,981) 899,278

Reclamation liability 566,782 1,365 (3,303) 564,844

Less current portion of

compensated absenses - - - (1,059,702)

Total 3,437,147$ 1,310,283$ (952,611)$ 2,735,117$

51

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



8.

Leases

Substantially all the property owned by RTAA is subject to non-cancelable leases and concession

agreements. The Authority, as a lessor, recognizes a lease receivable and a deferred inflow of

resources at the commencement of the lease term, with certain exceptions for leases of assets held as

investments, certain regulated leases, short-term leases, and leases that transfer ownership of the

underlying asset. For the lessor the asset underlying the lease is not derecognized. The lease

receivable is measured at the present value of the lease payments expected to be received during the

lease term. The deferred inflow of resources should be measured at the value of the lease receivable

in addition to any payments received at or before the commencement of the lease term that relate to

future periods.

For the purposes of the GASB No. 87 implementation, leases have been categorized as follows:

 GASB No. 87 Leases – Included

 GASB No. 87 Leases – Excluded – Regulated

GASB No. 87 Leases – Included

In accordance with GASB No. 87, the Authority recognizes a lease receivable and a deferred inflow

of resources for leases that are categorized as GASB No. 87 - Included. At the implementation date

of July 1, 2021, the beginning lease receivable and the deferred inflows were equal. These leases are

summarized as follows:

Concessions – the Authority has entered into multiple lease agreements for the use of concession

space. The terms of these agreements include a variable revenue component that is not included in

the measurement of the lease receivable related to the Authority receiving a concession fee based on

concession sales. Revenue recognized under the variable component of these lease agreements was

$9,458,011 for the year ending June 30, 2022. The agreements related to rental car concessions expire

on June 20, 2023, and other concession spaces have various expiration dates between 2023 and 2038.

Rentals – the Authority has entered into multiple property lease agreements to include land, buildings,

and office space. These leases range in expiration dates through February 28, 2067. The rent escalates

by an inflationary factor each year.



Beginning

Lease

Receivable

Implied

Interest

Annual Lease

Revenue

Ending Lease

Receivable

Deferred

Inflows

Concessions 11,317,061$ 78,994$ 5,799,000$ 6,829,501$ 6,799,828$

Rentals 37,416,007 513,421 3,277,370 34,607,825 34,380,209

Total 48,733,068$ 592,415$ 9,076,370$ 41,437,326$ 41,180,037$

52

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



The receivable on these leases was discounted to the net present value determined as of July 1, 2021.

The discount rates are based on the Authority’s alternative minimum tax (AMT) borrowing rate and

the length of the lease and range from 0.83% to 2.02%.

Total future minimum lease payments to be received under lease agreements are as follows:

GASB No. 87 Leases – Excluded - Regulated

In accordance with GASB Statement No. 87, the Authority does not recognize a lease receivable and

a deferred inflow of resources for regulated leases. Regulated leases are certain leases subject to

external laws, regulations, or legal rulings, e.g., the U.S. Department of Transportation (DOT) and

the FAA, regulated aviation leases between airports and air carriers and other aeronautical users.

The Authority leases certain assets to various third parties, including ticket counters, passenger hold

rooms, terminal operations space, terminal office space, baggage service office space, unenclosed

storage areas, hangars, grounds and land, and are regulated leases under the FAA Rates and Charges

Policy and Grant Assurance 22. Leased land and hangars are considered exclusive use, while several

of the terminal locations are considered preferential or joint use. Terminal areas considered

preferential or exclusive use under regulated leases are as follows:

 Passenger hold rooms – 14 of 23 available passenger hold rooms are designated as

preferential use

 Baggage service office space – 100% of available space is designated preferential use

 Ticket counters – 35 of 53 available ticket counters are designated as preferential use

 Ticket office space – 100% of available space is designated preferential use

 Terminal operations space – 100% of available space is designated preferential use

 Unenclosed storage areas – 100% of available space is designated preferential use

Year Ending

June 30, Principal Interest Total Payments

2023 8,931,660$ 548,369$ 9,480,029$

2024 2,281,698 496,288 2,777,986

2025 2,206,258 469,598 2,675,856

2026 2,214,296 443,123 2,657,419

2027 1,740,770 417,584 2,158,354

2028-2032 5,052,142 1,823,234 6,875,376

2033-2037 4,106,513 1,485,017 5,591,530

2038-2042 4,242,383 1,153,147 5,395,530

2043-2047 4,546,818 804,711 5,351,529

2048-2052 4,927,754 423,776 5,351,530

2053-2057 2,522,915 111,975 2,634,890

2058-2062 791,800 48,160 839,960

2063-2067 769,245 14,718 783,963

Total 44,334,252$ 8,239,700$ 52,573,952$

53

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



For the year ended June 30, 2022, RTAA received $2,596,704 in payments from leases under

regulated lease agreements, of which $1,113,198 was for fixed payments.

Future noncancelable fixed minimum payments under regulated lease agreements are as follows:

9.

Pension Plan

A. Purpose and History

RTAA contributes to the Public Employees Retirement System of Nevada (PERS), a cost-sharing,

multiple-employer, defined benefit plan governed by the Public Employees Retirement Board. PERS

provides retirement benefits, disability benefits, and death benefits, including annual cost of living

adjustments, to plan members and their beneficiaries. NRS Chapter 286 establishes the benefit

provisions provided to the participants of PERS. These plan provisions may only be amended through

legislation.

PERS was established by the Nevada Legislature in 1947, effective July 1, 1948, to provide a

reasonable base income to qualified employees who have been employed by a public employer and

whose earning capacities have been removed or substantially impaired by age or disability.

Pension plan fiduciary net position: Detailed information about the pension plan’s fiduciary net

position is available in the separately issued pension plan financial reports. PERS issues a publicly

available financial report that includes financial statements and required supplementary information.

The report may be obtained by going to www.nvpers.org , writing to the Public Employees Retirement

System of the State of Nevada, 693 Nye Lane, Carson City, NV 89703-1599 or by calling (775) 687-

4200.

Year Ending

June 30, Amoun

t

2023 3,174,736$

2024 776,052

2025 678,929

2026 592,884

2027 590,764

2028-2032 2,917,453

2033-2037 2,867,238

2038-2042 2,846,293

2043-2047 2,837,843

2048-2052 2,809,815

2053-2057 2,396,087

2058-2062 2,124,544

Total 24,612,638$

54

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



B. Benefits

Benefits for plan members are funded under one of two methods: the employer paid contribution plan,

or the employer/employee paid contribution plan. All RTAA employees are under the employer paid

contribution plan where RTAA is required to contribute all amounts due under the plan. The

contribution requirements are established by NRS Chapter 286. The funding mechanism and benefits

may only be amended through legislation.

The RTAA’s contribution rates based on employee members covered payroll and amounts contributed

(equal to the required contributions) are as follows:

Contribution Rate

Regular Police/Fire Total Contribution

29.75% 44.00% $6,193,630

Benefits, as required by NRS, are determined by the number of years of accredited service at time of

retirement and the member’s highest average compensation in any 36 consecutive months with special

provisions for members entering the System on or after January 1, 2010. Benefit payments to which

participants or their beneficiaries may be entitled under the plan include pension benefits, disability

benefits, and survivor benefits.

Monthly benefit allowances for members are computed at 2.5% of average compensation for each

accredited year of service prior to July 1, 2001. For service earned on and after July 1, 2001, this

multiplier is 2.67% of average compensation. For members entering the System on or after January

1, 2010, there is a 2.25% multiplier.

The System offers several alternatives to the unmodified service retirement allowance which, in

general, allow the retired employee to accept a reduced service retirement allowance payable monthly

during his or her lifetime and various optional monthly payments to a named beneficiary after his or

her death. Post-retirement increases are provided by the authority of NRS 286.575–.579.

C. Vesting

Regular members are eligible for retirement at age 65 with five years of service, at age 60 with ten

years of service, or at any age with 30 years of service. Regular members entering the System on or

after January 1, 2010, are eligible for retirement at age 65 with five years of service, or age 62 with

ten years of service, or any age with 30 years of service. Regular members who entered the System

on or after July 1, 2015, are eligible for retirement at age 65 with five years of service, or at age 62

with ten years of service, or at age 55 with 30 years of service or any age with 33 1/3 years of service.

Police/Fire members are eligible for retirement at age 65 with five years of service, at age 55 with ten

years of service, at age 50 with 20 years of service, or at any age with 25 years of service. Police/Fire

members entering the System on or after January 1, 2010, are eligible for retirement at age 65 with

five years of service, or age 60 with ten years of service, or age 50 with 20 years of service, or at any

age with 30 years of service. Only service performed in a position as a police officer or firefighter

may be counted towards eligibility for retirement as Police/Fire accredited service.

55

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022

The normal ceiling limitation on monthly benefit allowances is 75% of average compensation.

However, a member who has an effective date of membership before July 1, 1985, is entitled to a

benefit of up to 90% of average compensation. Both Regular and Police/Fire members become fully

vested as to benefits upon completion of five years of service.

D. Member Contributions

The authorit

y for establishing and amending the obligation, to make contributions and member

contribution rates, is set by NRS. New hires, in agencies which did not elect the Employer-Pay

Contribution (EPC) plan, prior to July 1, 1983, have the option of selecting one of two contribution

plans. One plan provides for matching employee and employer contributions, while the other plan

provides for employer-pay contributions only.

Under the matching Employee/Employer Contribution plan a member may, upon termination of

service for which contribution is required, withdraw employee contributions which have been credited

to their account. All membership rights and active service credit in the System are canceled upon

withdrawal of contributions from the member’s account. If EPC was elected, the member cannot

convert to the Employee/Employer Contribution plan.

E.

Termination

Upon termination or

partial termination of the System, all accrued benefits that are funded become

100% vested and non-forfeitable.

F. Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Defe

rred Inflows of

Resources Related to Pensions

Based on a

Schedule of Employer Allocations, Schedule of Pension Amounts by Employer and

Related Notes provided by PERS, RTAA reported the net pension liability, total deferred outflow of

resources, deferred inflows of resources, and pension expense as of June 30, 2021.

The RTAA’s proportional share reflects the actuarial valuation date as of June 30, 2021, per the PERS

Actuarial Reports. Due to the difference between the valuation date of the PERS Actuarial Reports

and payments made in advance of the RTAA’s reporting date, pension contributions are recognized

as a deferred outflow of resources.

As of June 30, 2022, RTAA is reporting a liability of $24,565,172 for its proportionate share of the

net pension liability. This represents a decrease of $14,016,576 as compared to $38,581,748 reported

as of June 30, 2021. The RTAA’s proportion of the net pension liability reflects the RTAA’s

contributions to the pension plan relative to the contributions of all participating entities.

At June 30, 2022, the RTAA’s proportion share of the net pension liability, based on the RTAA’s

contributions to the pension plan relative to the contribution of all participating entities, is 0.2694%

of the total. This compares to the prior year’s proportion share of 0.2770% of the total. For the year

ended June 30, 2022, RTAA recognized pension expense reduction of $3,606,759.

56

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Deferred Outflows and Inflows of Resources:

At June 30, 2022, RTAA reported deferred outflows of resources and deferred inflows of resources

related to pensions from the following sources:

The deferred outflows of resources of $2,819,460 relates to RTAA pension contributions made after

the measurement date of June 30, 2021, but before the end of the RTAA’s reporting period of June

30, 2022, will be recognized as a reduction of the net pension liability in the subsequent fiscal year

ending June 30, 2023.

Experience gains/losses and the impact of changes in actuarial assumptions, if any, are amortized over

the average remaining service life of the active and inactive System members at the beginning of the

fiscal year, which was 6.14 years. Investment gains and losses are amortized over a fixed five-year

period. Deferred outflows/ (inflows) related to pensions excluding pension contributions made

subsequent to the measurement date and the change in proportion and differences between actual

contributions and proportionate share contributions will be recognized as follows:

Deferred Outflows Deferred Inflows

of Resources of Resources

Difference between expected and actual experience 2,721,075$ 172,881$

Changes of assumptions 8,156,060 -

Net difference between projected and actual earnings on investments - 20,044,398

Change in proportion and contributions differences between

employer contributions and proportionate share of contributions 301,778 1,579,990

Contributions subsequent to measurement date 2,819,460 -

Total 13,998,373 21,797,269

Net Deferred

Year Ended Outflow/(Inflow)

June 30, of Resources

2023 (3,174,728)$

2024 (3,113,514)

2025 (3,239,215)

2026 (3,471,836)

2027 2,088,877

2028 292,060

Total (10,618,356)$

57

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Assumptions

The net pension liability reported as of June 30, 2021, was determined using the following

assumptions in the PERS Actuarial Reports, applied to all periods included in the measurement:

Inflation rate 2.50%

Productivit

y

p

a

y

increase 0.50%

Projected salary increases Regular: 4.20% to 9.10% depending on service

Police/Fire: 4.60% to 14.50% depending on service

Rates include inflation and

p

roductivit

y

increases

Investmen

t

rate of return 7.25%

Other Assumptions Same as those used in the June 30, 2021, funding actuarial

valuation.

The following actuarial assumptions determined the mortality rates:

Pre-

.

Retirement:

Pub-2010 General Employee Amount-Weighted Above-Median Mortality

Table (separate tables for males and females), projected generationally with

the two-dimensional mortality improvement scale MP-2020.

Healthy: Pub-2010 General Healthy Retiree Amount-Weighted Above-Median Mortality

Table (separate tables for males and females) with rates increased by 30% for

males and 15% for females, projected generationally with the two-dimensional

monthly improvement scale MP-2020.

For ages less than 50, mortality rates are based on the Pub-2010 General Employee

Amount-Weighted Above-Median Mortality Tables and the rates at age 50 from

the Pub-2010 General Healthy Retiree Amount-Weighted Above-Median

Mortality Tables.

Disabled: Pub-2010 Non-Safety Disabled Retiree Amount-Weighted Mortality Table (separate

tables for males and females) with rates increased by 20% for males and 15% for

females, projected generationally with the two-dimensional mortality improvement

scale MP- 2020.

Changes since measurement date: There were no changes between the measurement date of the

collective net pension liability and the employer's reporting date.

Assumed Asset Allocation

The PERS Board establishes the target asset allocations for the investment portfolio and the expected

real rates of return (expected returns, net of investment expenses and inflation) for each asset class.

The asset allocation is reviewed annually and is designed to meet the future risk and return needs of

the System. The following target asset allocation policy was adopted as of June 30, 2020.



58

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Asset

Class

Target

Allocation

Long-Term Geometric

Expected Real Rate of

Return*

U.S. Stocks 42% 5.50%

International Stocks 18% 5.50%

U.S Bonds 28% 0.75%

Private Markets 12% 6.65%

*The PERS’ long-term inflation assumption was 3.50%

G. Discount rate

The discount rate used in the PERS Actuarial Reports to measure the total pension liability is 7.25%.

The projection of cash flows used to determine the discount rate assumed the employee and employer

contributions will be made at the rate specified in statute. Based on those assumptions, the pension

plan’s fiduciary net position at June 30, 2021 was projected to be available to make all projected

future benefit payments for current active and inactive members. Therefore, the long-term expected

rate of return on pension plan investments was applied to all periods of projected benefit payments to

determine the total pension liability as of June 30, 2021.

H. Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the RTAA’s net pension liability using the discount rate of 7.25%, as well as

what the RTAA net pension liability would be if it were calculated using a discount rate that is one-

percentage-point lower (6.25%) or one-percentage-point higher (8.25%) than the current rate:

10.

Capital Contributions

Certain expenses for airport capital improvements are significantly funded through the FAA’s AIP

program, with certain matching funds provided by RTAA either through internal funds or PFCs.

Capital improvements may also be funded by an agreement between RTAA and TSA.

Grants and related agreements for the acquisition and construction of land, property and certain types

of equipment are reported in the Statements of Revenues, Expenses and Changes in Net Position, after

non-operating revenue and expenses, as capital contributions.

The Authority recognized $27,680,873 from federal sources and $5,159 from other sources for the

year ended June 30, 2022.



1% Decrease Discount Rate 1% Increase

(6.25%) (7.25%) (8.25%)

RTAA's proportionate share

of the net pension liability 48,908,470 24,565,172 4,483,943

59

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



11.

Commitments and Contingencies

RTAA has outstanding commitments for various construction projects. The following is a summary

of the more significant of these commitments at June 30, 2022:

Financial resources for these projects will come from FAA grants, PFC revenue, CFC revenue, the

General Purpose Fund, and Special Fund. In 2000, RTAA entered into a Consent Decree in the case

captioned “Nevada Division of Environmental Protection vs. United States of America et al.” The

Consent Decree, which relates to certain land located at the Reno-Stead Airport, requires those parties

identified to perform environmental investigation, monitoring, and remediation for any contamination

found. Other parties to this Consent Decree are the City of Reno, U.S. Department of Defense by and

through the U.S. Army Corps of Engineers and various Lear entities. These parties utilize an

allocation for costs to address the contamination as follows: U.S. Army Corps of Engineers 51%, City

of Reno 12%, Lear entities 18.5% and RTAA 18.5%.

Previously, U.S. Army Corps of Engineers paid $2.62 million to prefund these costs and the Lear

entities paid $1.57 million as a settlement to end participation. The bank balance of this fund is

$523,721 for year ended June 30, 2022.

During the 2011-2012 fiscal year, an updated study was completed, which identified additional

remediation costs of $5.48 million that would be required over the next 23 years. Based on the 18.5%

share allocated to RTAA, additional expense and a related liability of $474,912 was recorded and

$475,000 was added to the fund for the RTAA share. The reclamation liability at June 30, 2022, is

$564,844.

RTAA may be a defendant in certain litigation arising out of the normal operation and ownership of

the Airports. RTAA management and legal counsel estimate that the potential claims against RTAA

will not materially affect the financial statements.

12.

Risk Management

RTAA is exposed to various risks of loss related to theft of, damage to and destruction of assets,

police and public official liability, injuries to employees and customers, and natural disasters. These

risks are covered by commercial insurance purchased from independent third parties. RTAA also

provides employees with health, dental, vision, and prescription benefits. These benefits (except

vision and dental which are self-funded) are covered by commercial insurance purchased from

independent third parties. Settled claims from these risks have not exceeded commercial insurance

coverage for the past three years.



Airfield 4,353,832$

Terminal 2,425,007

Landside 7,649,879

Reno-Stead Airport 3,180,489

Other 854,610

Total outstanding commitments 18,463,817$

60

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



13.

Other Postemployment Benefits (OPEB)

The RTAA provides other postemployment benefits for eligible retirees through one plan: State of

Nevada’s Public Employees Benefits Program (PEBP) if retired prior to September 1, 2008. This plan

provides medical benefits to eligible RTAA retirees and beneficiaries.

Plan Description and Eligibility: For employees who retired prior to September 1, 2008, NRS 287.023

allows retired employees of governmental entities within the State of Nevada to join the state’s PEBP,

an agent multiple- employer defined benefit OPEB plan administered by a nine-member governing

board. PEBP provides medical, prescription, vision, life, and accident insurance, and dental for

retirees. Retirees can choose between a self-funded Preferred Provider Organization (PPO) and a

Health Maintenance Organization (HMO) plan. RTAA makes contributions as outlined below under

the section titled “Funding Policy” and retirees are responsible for payment of unsubsidized

premiums. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established

to account for the plan, and no financial reports are issued.

Eligibility and subsidy requirements are governed by statutes of the State of Nevada and can only be

amended through legislation. The statutes were revised with an effective date of November 30, 2008,

to create new participation limitations so that only active members of PEBP can elect coverage after

retirement. As a result, no employees retiring from RTAA on or after September 1, 2008, are eligible

to participate in this plan as a retiree at the RTAA’s expense.

Funding Policy: RTAA is required to provide a subsidy to the plan of each retiree that has joined the

PEBP. Contribution requirements for plan members and the participating employers are assessed by

the PEBP Board annually. The contributions required for PEBP subsidies depends on the date of

retirement, prior years of PERS service former employees earned while working for RTAA, and

number of qualifying employers. The subsidies are determined by years of service and range from a

minimum of $3 to a maximum of $1,526 per month for the year ended June 30, 2022. Subsidies for

retiree premiums are paid directly to the State PEBP when due.

The RTAA’s obligation for subsidies is limited to payment of the statutorily required contribution.

The current year contribution to PEBP was $127,166 for 34 retirees, which equaled the required

contribution. As of June 30, 2022, the plan was funded on a “pay as you go” basis and no contribution

was made to fund the actuarial determined liability.

Actuarial assumptions and other inputs: The total OPEB liability in the June 30, 2020, actuarial

valuation was determined using the following actuarial assumptions and other inputs. Applied to all

periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2020

Measurement Date June 30, 2021

Fundin

g

Method Entr

y

A

g

e Normal Cost, level

p

ercen

t

of

p

a

y

Asset Valuation Method ($0; no OPEB trust has been established)

Discount Rate 2.21% as of June 30, 2020

2.16% as of June 30

,

2021

Partici

p

ants Valued Onl

y

curren

t

PEBP Retirees

Salar

y

Increase No

t

a

pp

licable; no active em

p

lo

y

ees in

p

lan

General Inflation Rate 2.5%

p

e

r

y

ea

r

61

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



Changes in the Total OPEB Liability: The total OPEB liability at June 30, 2022, was calculated as

follows:

Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trend Rate: The discount

rate used for the fiscal year ending June 30, 2021, is 2.21%. Healthcare cost trend rate prior to eligibility

for Medicare was assumed to start at 5.8% (increase effective January 1, 2021) and fluctuate down to

the ultimate rate of 4.0% by year 2076; medical cost inflation for those covered by Medicare. The

impact of a 1% increase or decrease in these assumptions is shown in the chart below.

OPEB Liability at June 30, 2021 1,995,373$

Changes for the year:

Interest cost 42,867

Assumption changes 12,293

Benefit payments (111,412)

OPEB Liability at June 30, 2022 1,939,121$

Mortality The basic mortality rates used in this valuation are based on

the published report of

the Nevada Public Employees

Retirement System, dated June 30,

2019.

Non-disabled life rates for Regular employees:

Males and Females: Headcount-Weighted RP-2014 Healthy

Disabled life rates for Regular & Safety employees:

Males and Females: Headcount-Weighted RP-2014 Disabled

Retiree Table, set forward 4 years

Medicare Eligibility Absent contrary data, all individuals are assumed to be eligible

for

Medicare Parts A and B at 65. Retirees over age 65 who

are no

t

eli

g

ible fo

r

Medicare are assumed to remain ineli

g

ible.

Participation Rate All retirees currently covered by PEBP are assumed to retain

thei

r

existin

g

election until death.

Healthcare Trend

RTAA’s subsidy toward the cost of PEBP retiree coverage is

assumed to increase at the following rates:

Effective

July 1

Premium

Increase

2021

5.8%

2022

5.7%

2023

5.6%

2024

5.5%

2024 - 2026

5.4%

2027 - 2029

2030 - 2051

5.3%

5.2%

62

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to

OPEB:



The deferred outflow of resources of $127,166 relates to RTAA’s OPEB contributions made after the

measurement date of June 30, 2021, but before the end of the RTAA’s reporting period of June 30,

2022.

14.

Post-Employment Health Plan (PEHP) – Defined Contribution Plan

Plan Description and Eligibility: RTAA established the Post Employment Health Plan, pursuant to

Section 501(C) (9) of the Internal Revenue Code permitting such plans. The plan is administrated by

Nationwide Retirement Solutions. The purpose of the plan is to provide for reimbursement of

qualified post-employment expenses for medical care, including expenses for medical insurance,

incurred by employees covered by RTAA and who have separated from service.

Funding Policy: The plan provides employees, subject to Management Guidelines, Civil Service Plan,

or the collective bargaining agreement with the RTAA Police Officers Association, an individual

account for post-employment health benefits. The funding of the employees subject to Management

Guidelines and Civil Service Plan is as follows:

A. Each July 1, RTAA shall contribute the amount of accrued sick leave as of the last pay

period in June into the employee’s individual PEHP plan account at 100% of the

employee’s

base rate of pay.



Change in 1% Decrease Discount Rate 1% Increase

Discount Rate (1.16%) (2.16%) (3.16%)

Incre ase in Lia bility 2,212,971 1,939,121 1,715,075

Change in Healthcare

Cost Trend Rate 1% Decrease Current Trend 1% Increase

Incre ase in Lia bility 1,723,190 1,939,121 2,197,422

Deferred Outflows Deferred Inflows

of Resources of Resources

Contributions subsequent to measurement date 127,166 -

Total 127,166 -

63

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



All contributions will be made on a pre-tax basis as follows:

Sick Leave Balance Amount of Sick Leave Contributed

to Em

p

lo

y

ee’s PEHP Accoun

t

100-199 hours 5 hours

200-299 hours 10 hours

300-399 hours 25 hours

400-499 hours 35 hours

500-599 hours 50 hours

600-699 hours 65 hours

700-799 hours 80 hours

800-899 hours 95 hours

900-999 hours 110 hours

1000 or more hours 150 hours



Each July 1

for those employees with accrued vacation leave balances greater than two hundred

(200) hours as of the last pay period in June, RTAA shall contribute 20 hours from

each

employee’s accrued vacation account into the employee’s individual PEHP plan account at

100%

of the employee’s base rate of pay on June 30. All contributions will be made on a pre-tax basis.

B. Each July 1

for those employees that have not used the Floating Holiday as of the last

pay

period in June, RTAA will convert the Floating Holiday hours at the employee’s base

rate of

pay on June 30

and contribute those funds to the employee’s individual PEHP plan

account. All

contributions will be made on a pre-tax basis.

For the year ended June 30, 2022, $224,590 was contributed to the PEHP plan.

The plan for employees covered by the collective bargaining agreement with the RTAA

Police

Officers Association is funded under the following provisions:

A.

Upon the plan’s inception, RTAA contributed a one-time lump sum payment in the amount

of $900 into the plan for each officer.

B.

Each pay period, $31 of each member’s salary will be put into their plan account.

C.

Once a member has accumulated eighty (80) hours of compensatory time, RTAA shall

contribute 100% of that member’s compensatory time in excess of eighty (80) hours into

their

plan account at 100% of their base pay.

D.

On the first pay period each December, RTAA shall contribute forty (40) hours of each

member’s accrued vacation time into their plan account at 100% of their base pay, provided

such

contribution does not reduce the member’s vacation accrual balance to less than

200 hours.

For the year ended June 30, 2022, $13,335 was contributed to the RTAA Police Officers

Association

plan.



64

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022



The plan for employees covered by the collective bargaining agreement with the RTAA

Reno Airport Fire Fighters Association is funded under the following provisions:

A.

Effective October 1, 2017 – June 30, 2022, the employer will contribute $92.31 each pay

period

(26 pay periods per year) into each employee’s individual plan account.

B.

An amount equal to $60.00 of each employee’s salary per pay period (26 pay periods per

year)

shall be contributed into his/her plan account.

C.

If an employee has greater than 116 hours of compensatory time as of the last pay period

of any

fiscal year (prior to any roll-over of hours), the employer shall contribute 20

hours of that

employee’s compensatory time into their plan account at 100% of their base

pay.

D.

If an employee has greater than 200 hours of vacation accrual as of the last pay period

of any

fiscal year, the employer shall contribute 20 hours of that employee’s vacation

accrual into their

plan account at 100% of their base pay.

E.

If an employee has not used his/her floating holiday as of the last pay period of any fiscal

year,

the employer shall contribute that employee’s floating holiday (12 hours) into their

plan account

at 100% of their base pay.

F.

If an employee with the indicated years of service has greater than 600 hours of sick accrual

as

of the last pay period of any fiscal year, the employer shall contribute 20 hours of that

employee’s sick accrual into their plan account at the indicated percentage of their base pay:

Years of Service % of Base Pay

5

b

u

t

less than 10 12.5%

10

b

u

t

less than 20 25%

20 o

r

more 50%

For the year ended June 30, 2022, $90,026 was contributed to the Reno Airport Fire

Fighters

Association plan.

15.

Subsequent Events

Management of the Authority has evaluated events and transactions occurring after June 30, 2022,

through the date the financial statements were available for issuance for recognition and/or disclosure

in the financial statements.

On August 3, 2022, RTAA entered into a Non-Revolving Agreement with Wells Fargo Bank,

National Association in an aggregate principal amount not to exceed $50,000,000 for certain capital

improvements. No material draws have been made other than for debt issuance fees.

65

REQUIRED

SUPPLEMENTARY

INFORMATION

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF CHANGES IN THE AUTHORITY'S TOTAL OPEB LIABILITY

AND RELATED RATIOS

2022 2021 2020 2019 2018

Total OPEB Liability

Service Cost - - - - -

Interest Cost 42,867$ 55,995$ 61,637$ 59,099$ 53,980$

Changes of Benefit Terms (a) - - - (22,397) -

Differences between expected and actual experience - 38,657 - (42,484) -

Assumption Changes 12,293 363,229 71,227 18,135 (129,137)

Benefit Payments (111,412) (115,638) (128,486) (120,364) (124,223)

Net change in total OPEB liability (56,252) 342,243 4,378 (108,011) (199,380)

Total OPEB Liability - beginning 1,995,373 1,653,130 1,648,752 1,756,763 1,956,143

Total OPEB Liability - ending 1,939,121$ 1,995,373$ 1,653,130$ 1,648,752$ 1,756,763$

RTAA's Covered Payroll (b) -$ -$ -$ -$ -$

(a) Subsequent to fiscal year end 2019 the RTAA Group Health Plan no longer had retirees.

(b) The Public Employee Benefit Program is a closed plan; and therefore, there are no current covered employees.

(c) There are no assets accumulated in a trust to pay related benefits

This schedule is presented to illustrate the requirement to show information for 10 years. However until

a full 10-year trend is compiled, the RTAA is presenting information for those years for which

information is available.

66

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF THE AUTHORITY'S PROPORTIONATE SHARE

OF THE NET PENSION LIABILITY

2022

(b)

2021

(b)

2020

(b)

2019

(b)

2018

(b)

2017

(b)

2016

(b)

2015

(b)

RTAA's proportion of the net pension liability 0.2694% 0.2770% 0.2795% 0.2774% 0.2867% 0.2810% 0.2846% 0.2800%

RTAA's proportionate share of the net

pension liability $24,565,172 $38,581,748 $38,109,676 $37,835,366 $38,129,158 $37,811,756 $32,609,501 $29,388,235

RTAA's covered payroll $17,749,645 $18,298,781 $17,709,373 $17,204,432 $17,041,362 $15,831,440 $15,511,214 $15,137,166

RTAA's proportion of the net pension liability

as a percentageof its covered payroll 138.40% 210.84% 215.19% 219.92% 223.74% 238.84% 210.23% 194.15%

Plan fiduciary net position as a percentage

of the total pension liability 86.5% 77.04% 76.46% 75.2% 74.4% 72.2% 75.1% 76.3%

(a) This schedule is presented to illustrate the requirement to show information for 10 years. However until a full 10-year trend is compiled, the Authority is

presenting information for those years for which information is available.

(b) Actuarial Studies used to calculate total and RTAA net pension liability are completed as of June 30th in the previous fiscal year. Covered payroll also

reflects the previous year to match the liability.

67

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF THE AUTHORITY'S CONTRIBUTIONS

2022 2021 2020 2019 2018 2017 2016 2015

Statutorily required contribution 6,193,630 5,675,385 5,771,419 5,383,749 5,149,826 5,146,592 4,742,955 4,392,386

Contributions in relation to the statutorily

required contribution 6,193,630 5,675,385 5,771,419 5,383,749 5,149,826 5,146,592 4,742,955 4,392,386

Annual contribution deficiency (excess) - - - - - - - -

Percent funded 100% 100% 100% 100% 100% 100% 100% 100%

Authority's covered payroll 19,053,901 17,749,645 18,298,781 17,709,373 17,204,432 17,041,362 15,831,440 15,511,214

Contributions as a percentage of covered

payroll

32.51% 31.97% 31.54% 30.40% 29.93% 30.20% 29.96% 28.32%

This schedule is presented to illustrate the requirement to show information for 10 years. However until a full 10-year trend is compiled, the RTAA is presenting

information for those years for which information is available.

Note: Amounts reported above for statutorily required contributions include employer and employee contributions made to the Plan. RTAA contributes the

employees' share on their behalf.

68

OTHER

SUPPLEMENTARY

INFORMATION

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF REVENUES AND EXPENSES

COMPARISON OF BUDGET TO ACTUAL

JUNE 30, 2022

Original

Budget

Final

Amended

Budget Actual

Variance To

Final Budget

Operating revenues:

Landing fees 9,553,953$ 9,553,953$ 10,584,517$ 1,030,564$

Concession revenue 10,592,343 10,592,343 15,257,011 4,664,668

Parking and ground transportation 8,853,300 8,853,300 14,004,587 5,151,287

Rentals 16,792,796 16,792,796 15,073,833 (1,718,963)

Reimbursements for services 2,194,932 2,194,932 3,000,059 805,127

Other revenue 93,900 93,900 145,174 51,274

Total Operating Revenues 48,081,224 48,081,224 58,065,181 9,983,957

Operating expenses:

Employee wages and benefits 32,939,635 32,939,635 30,348,607 2,591,028

Utilities and communications 2,848,730 2,848,730 3,156,581 (307,851)

Purchase of services 8,011,140 8,011,140 7,405,170 605,970

Materials and supplies 2,353,834 2,353,834 2,575,145 (221,311)

Administrative expenses 3,778,287 3,778,287 2,854,518 923,769

Total Operating Expenses before

Depreciation and Amortization

49,931,626 49,931,626 46,340,021 3,591,605

Depreciation and amortization 30,000,000 30,000,000 25,079,112 4,920,888

Total Operating Expenses 79,931,626 79,931,626 71,419,133 8,512,493

Operating Income (Loss) (31,850,402) (31,850,402) (13,353,952) 18,496,450

Non-operating revenues (expenses):

Interest income 708,000 708,000 (1,491,248) (2,199,248)

Passenger facility charge revenue 5,653,900 5,653,900 8,502,997 2,849,097

Customer facility charge revenue

5,693,000 5,693,000 6,350,891 657,891

Jet fuel tax revenue 213,700 213,700 294,018 80,318

Gain (loss) on sale of capital assets - - 15,080 15,080

Federal grant revenue 11,745,950 11,745,950 14,483,077 2,737,127

Interest expense (285,450) (285,450) (399,857) (114,407)

Total Non-Operating Revenues

(Expenses) 23,729,100 23,729,100 27,754,958 4,025,858

Income (Loss) Before Capital Contribution (8,121,302)$ (8,121,302)$ 14,401,006$ 22,522,308$

69

Statistical

Section

STATISTICAL SECTION EXPLANATIONS

This part of the RTAA’s comprehensive annual financial report presents detailed

information as a context for understanding what the information in the financial statements,

note disclosures, and required supplementary information says about the Authority’s

overall financial health.

Contents

Financial Trends

These schedules contain trend information to help the reader understand

how the Authority’s financial performance and well-being have changed

over time.

Revenue Capacity

These schedules contain information to assist the reader in understanding

and assessing the factors affecting the Authority’s ability to generate

revenues.

Debt Capacity

These schedules present information to help the reader assess the

affordability of the Authority’s current levels of outstanding debt and the

Authority’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the

reader understand the environment within which the Authority’s financial

activities take place.

Operation Information

These schedules contain service data to help the reader understand how the

information in the Authority’s financial report relates to the services the

Authority provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the

comprehensive annual financial report for the relevant year.

70

2013 2014 2015 2016 2017

Operating revenues

Landing fees $7,380,804 $7,440,496 $7,916,995 $8,071,097 $8,285,922

Concession revenue 10,478,433 10,301,098 10,344,733 10,861,366 11,798,086

Parking and ground transportation 8,914,030 8,983,926 9,515,946 10,519,785 11,316,885

Rentals 11,967,776 13,282,322 13,456,901 13,599,106 13,688,849

Reimbursements for services 2,579,738 2,632,002 2,647,105 2,419,689 2,531,223

Other revenue 92,093 34,596 106,844 42,873 168,024

Total operating revenues 41,412,874 42,674,440 43,988,524 45,513,916 47,788,989

Nonoperating revenues

Interest income 76,298 195,296 289,755 716,702 577,434

Gain (Loss) on value of investments (8,517) 93,985 (3,274) (21,981) (271,937)

Passenger facility charge revenue 6,453,403 6,601,269 6,332,093 6,740,165 7,480,732

Customer facility charge revenue 1,088,981 1,263,517 1,252,480 1,385,061 1,481,004

Jet fuel tax income 276,338 264,586 246,059 268,287 298,124

Gain on sale of capital assets 32,003 5,631 29,533 105,471 13,298

Misc. Revenue - - - - -

Total nonoperating revenues 7,918,506 8,424,284 8,146,646 9,193,705 9,578,655

Total revenues 49,331,380 51,098,724 52,135,170 54,707,621 57,367,644

Operating expense

Employee wages and benefits 23,255,693 24,301,598 24,638,525 25,007,616 26,672,375

Utilities and communications 2,559,355 2,774,328

2,757,835

2,540,504 2,337,577

Purchase of services 4,588,047 4,770,478 4,763,544 4,803,679 4,595,802

Materials and supplies 1,850,565 1,749,084 1,582,278 1,821,369 1,753,352

Administrative expenses 2,273,581 2,563,199 2,113,887 2,443,771 2,579,040

34,527,241 36,158,687 35,856,069 36,616,939

37,938,146

Depreciation and amortization 33,189,676 35,816,772 34,958,476 34,613,731 34,462,715

Total operating expenses 67,716,917 71,975,459 70,814,545 71,230,670 72,400,861

Nonoperating expenses

Non-operating expense - - - 140,952 7,814

Interest expens

e

1,460,898 1,545,697 1,376,012 1,284,053 616,855

Total nonoperating expenses 1,460,898 1,545,697 1,376,012 1,425,005 624,669

Total expenses 69,177,815 73,521,156 72,190,557 72,655,675 73,025,530

Capital contributions 14,651,900 12,210,737 4,867,414 10,010,497 2,517,123

Change in Net Position ($5,194,535) ($10,211,695) ($15,187,973) ($7,937,557) ($13,140,763)

Net Position at Year-End

Net Investment in capital assets

$412,444,732 $395,050,506 $382,231,061 $367,749,013 $345,904,676

Restricted 14,720,733 22,897,188 22,459,489 20,371,555 23,692,496

Unrestricted 38,426,126 37,432,202 2,670,101 11,302,526 16,685,159

Total Net Position $465,591,591 $455,379,896 $407,360,651 $399,423,094 $386,282,331

Continued

RENO-TAHOE AIRPORT AUTHORITY

NET POSITION AND CHANGES IN NET POSITION

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

71

2018 2019 2020 2021 2022

Operating revenues

Landing fees $9,397,172 $9,719,482 $10,077,732 $8,948,847 $10,584,517

Concession revenue 12,802,725 13,086,886 11,301,837 9,628,195 15,257,011

Parking and ground transportation 12,009,701 12,817,675 10,012,455 7,361,177 14,004,587

Rentals 13,838,446 14,078,153 16,534,688 15,715,644 15,073,157

Reimbursements for services 2,416,793 2,671,073 2,397,717 1,823,280 3,000,059

Other revenue 190,432 176,468 345,296 185,773 145,174

Total operating revenues 50,655,269 52,549,737 50,669,725 43,662,916 58,064,505

Nonoperating revenues

Interest income 835,868 1,301,531 1,588,183 886,650 1,247,655

Gain (Loss) on value of investments (374,498) 867,298 736,237 (935,537) (2,737,875)

Passenger facility charge revenue 7,587,771 8,443,673 7,607,924 4,514,399 8,502,997

Customer facility charge revenue 1,692,038 4,613,478 4,891,406 4,954,128 6,350,891

Jet fuel tax income 310,500 306,035 263,135 203,765 294,018

Gain on sale of capital assets 169,208 25,070 28,196 41,838 15,080

Misc Revenue - - 617,197 7,059,146 14,483,077

Total nonoperating revenues 10,220,887 15,557,085 15,732,278 16,724,389 28,155,843

Total revenues 60,876,156 68,106,822 66,402,003 60,387,305 86,220,348

Operating expense

Employee wages and benefits 31,878,959 29,334,325 32,120,112 30,923,994 30,348,607

Utilities and communications 2,709,495 2,772,620

2,881,068

2,454,099 3,156,581

Purchase of services 4,866,467 5,521,530 5,418,705 4,887,352 7,405,170

Materials and supplies 2,050,694 2,045,295 2,340,685 2,259,926 2,575,145

Administrative expenses 2,224,655 2,646,733 2,431,355 2,086,926 2,854,518

43,730,270 42,320,503 45,191,925 42,612,297

46,340,021

Depreciation and amortization 31,094,092 27,801,203 27,608,618 26,827,690 25,079,112

Total operating expenses 74,824,362 70,121,706 72,800,543 69,439,987 71,419,133

Nonoperating expenses

Non-operating expense - - - - -

Interest expens

e

487,308 438,892 389,125 337,975 399,857

Total nonoperating expenses 487,308 438,892 389,125 337,975 399,857

Total expenses 75,311,670 70,560,598 73,189,668 69,777,962 71,818,990

Capital contributions 9,200,524 14,057,725 16,868,554 25,193,485 27,686,032

Change in Net Position ($5,234,990) $11,603,949 $10,080,889 $15,802,828 $42,087,390

Net Position at Year-End

Net Investment in capital assets

$334,863,315 $336,079,326 $348,801,466 $361,855,033 $388,632,933

Restricted 26,448,099 32,997,130 28,598,653 25,980,476 28,495,282

Unrestricted 18,238,659 22,077,566 23,834,792 29,202,230 41,996,914

Total Net Position $379,550,073 $391,154,022 $401,234,911 $417,037,739 $459,125,129

NET POSITION AND CHANGES IN NET POSITION

RENO-TAHOE AIRPORT AUTHORITY

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

72

2013 2014 2015 2016 2017

Operating Revenues $41,412,874 $42,674,440 $43,988,524 $45,513,916 $47,788,989

Operating Expenses (34,527,241) (36,158,687) (35,856,069) (36,616,939) (37,938,146)

Operating Income before

Depreciation and Amortization 6,885,633 6,515,753 8,132,455 8,896,977 9,850,843

Depreciation and Amortization (33,189,676) (35,816,772) (34,958,476) (34,613,731) (34,462,715)

Operating Income (Loss) (26,304,043) (29,301,019) (26,826,021) (25,716,754) (24,611,872)

Nonoperating Revenues and

(Expenses):

Interest Income 76,298 195,296 289,755 716,702 577,434

Gain (Loss) on value of Investments (8,517) 93,985 (3,274) (21,981) (271,937)

PFC Revenue 6,453,403 6,601,269 6,332,093 6,740,165 7,480,732

CFC Revenue 1,088,981 1,263,517 1,252,480 1,385,061 1,481,004

Jet Fuel Tax Revenue 276,338 264,586 246,059 268,287 298,124

Interest Expense (1,460,898) (1,545,697) (1,376,012) (1,284,053) (616,855)

Gain (Loss) on Sale of Capital Asset

s

32,003 5,631 29,533 105,471 13,298

Non-operating expenses

- - - (140,952) (7,814)

6,457,608 6,878,587 6,770,634 7,768,700 8,953,986

Income (Loss) Before

Capital Contributions ($19,846,435) ($22,422,432) ($20,055,387) ($17,948,054) ($15,657,886)

Continued

Note: Years

p

rior to 2015 have not been ad

j

usted for GASB 68 to 75

RENO-TAHOE AIRPORT AUTHORITY

SUMMARY OF OPERATING RESULTS

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

73

2018 2019 2020 2021 2022

Operating Revenues $50,655,269 $52,549,737 $50,669,725 $43,662,916 $58,064,505

Operating Expenses (43,730,270) (42,320,503) (45,191,925) (42,612,297) (46,340,021)

Operating Income before

Depreciation and Amortization 6,924,999 10,229,234 5,477,800 1,050,619 11,724,484

Depreciation and Amortization (31,094,092) (27,801,203) (27,608,618) (26,827,690) (25,079,112)

Operating Income (Loss) (24,169,093) (17,571,969) (22,130,818) (25,777,071) (13,354,628)

Nonoperating Revenues and

(Expenses):

Interest Income 835,868 1,301,531 1,588,183 886,650 1,247,655

Gain (Loss) on value of Investments (374,498) 867,298 736,237 (935,537) (2,737,875)

PFC Revenue 7,587,771 8,443,673 7,607,924 4,514,399 8,502,997

CFC Revenue 1,692,038 4,613,478 4,891,406 4,954,128 6,350,891

Jet Fuel Tax Revenue 310,500 306,035 263,135 203,765 294,018

Interest Expense (487,308) (438,892) (389,125) (337,975) (399,857)

Gain (Loss) on Sale of Capital Asset

s

169,208 25,070 28,196 41,838 15,080

Non-operating expenses

- - 617,197 7,059,146

14,483,077

9,733,579 15,118,193 15,343,153 16,386,414 27,755,986

Income (Loss) Before

Capital Contributions ($14,435,514) ($2,453,776) ($6,787,665) ($9,390,657) $14,401,358

Note: Years

p

rior to 2015 have not been ad

j

usted for GASB 68 to 75

RENO-TAHOE AIRPORT AUTHORITY

SUMMARY OF OPERATING RESULTS

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

74

2013 2014 2015 2016 2017

Airlines - Landing Fees Only

Alaska/Horizon 290,576$ 341,556$ 580,120$ 623,357$ 642,969$

American Airlines 533,388 592,839 715,170 1,308,569 1,125,206

Delta 416,790 406,794 455,739 426,813 433,298

Fed Ex 585,585 782,244 888,324 968,838 932,842

Jet Blue - - 11,198 13,515 238,725

Southwest 3,068,489 2,751,016 2,642,052 2,576,418 2,699,800

United 613,229 657,735 720,757 724,254 701,646

UPS 440,067 451,188 518,289 660,717 654,977

US Airways 475,990 542,374 608,778 - -

Total: 6,424,114$ 6,525,746$ 7,140,427$ 7,302,481$ 7,429,463$

Rental Cars - Concession Leases Only

Advantage 252,957$ 229,167$ -$ -$ -$

Avis/Budget 1,518,405 1,493,707 1,482,869 1,620,958 1,777,825

Alamo/ National 923,862 1,026,907 1,269,575 1,411,955 1,554,676

Dollar/Thrifty 881,351 840,070 805,775 757,453 750,745

Enterprise 929,817 879,344 806,729 978,067 1,183,386

Payless - 20,833 320,499 314,189 317,940

Hertz 1,455,966 1,421,777 1,375,025 1,506,355 1,606,381

Total: 5,962,358$ 5,911,805$ 6,060,472$ 6,588,977$ 7,190,953$

Other Concession Leases

IGT 1,697,814$ 1,322,752$ 1,266,307$ 1,071,402$ 974,166$

Paradies Gift Shops 705,250 901,000 901,000 944,071 1,016,968

SSP America, Inc. 835,653 929,240 887,963 992,984 1,221,761

Vino Volo - - - - -

Younger Agency Advertising 757,754 670,850 - - -

Clear Channel - - 640,403 564,210 663,436

Lamar Advertising - - - - -

Forever Heather 41,865 65,531 43,819 34,855 29,462

Total: 4,038,336$ 3,889,373$ 3,739,492$ 3,607,522$ 3,905,792$

Parking and Ground Transportation 8,914,030$ 8,983,926$ 9,515,946$ 10,519,785$ 11,316,885$

Total: 25,338,838$ 25,310,850$ 26,456,337$ 28,018,765$ 29,843,093$

Continued

Note: Each year the RTAA reports the largest tennent revenue payors.

RENO-TAHOE AIRPORT AUTHORITY

PRINCIPAL REVENUE PAYERS

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

75

2018 2019 2020 2021 2022

Airlines - Landing Fees Only

Alaska/Horizon 638,296$ 745,193$ 711,620$ 553,909$ 691,885$

American Airlines 1,253,063 1,313,727 1,331,551 1,079,312 1,275,569

Delta 507,079 566,983 534,997 779,290 775,125

Fed Ex 716,310 878,731 882,829 918,027 931,954

Jet Blue 281,464 281,296 226,627 107,869 259,437

Southwest 3,188,270 3,305,577 2,854,752 2,023,722 2,847,213

United 919,786 1,111,373 1,026,505 779,167 1,022,320

UPS 707,324 903,450 1,023,053 1,012,983 958,933

US Airways - - - - -

Total: 8,211,592$ 9,106,330$ 8,591,934$ 7,254,279$ 8,762,436$

Rental Cars - Concession Leases Only

Advantage -$ -$ -$ -$ -$

Avis/Budget 1,993,895 2,061,629 1,951,327 1,594,094 3,220,871

Alamo/ National 1,720,779 1,840,898 1,826,983 1,394,229 1,968,634

Dollar/Thrifty 920,885 1,038,332 1,055,493 725,000 1,038,391

Enterprise 1,360,048 1,448,153 1,430,990 1,427,003 1,951,129

Payless 286,503 340,580 301,284 250,000 250,000

Hertz 1,781,205 1,859,856 1,817,455 1,364,100 1,726,818

Total: 8,063,315$ 8,589,448$ 8,383,532$ 6,754,426$ 10,155,843$

Other Concession Leases

IGT 1,102,412$ 1,149,390$ 851,669$ 666,127$ 1,256,202$

Paradies Gift Shops 1,014,199 1,138,086 1,091,785 553,978 859,653

SSP America, Inc. 1,484,628 1,527,992 1,161,992 558,358 1,065,958

Vino Volo - 105,361 152,716 204,730 291,232

Younger Agency Advertising - - - - -

Clear Channel 699,857 768,828 828,974 647,686 458,599

Lamar Advertising - - - - 251,931

Forever Heather 35,958 - - - -

Total: 4,337,054$ 4,689,657$ 4,087,136$ 2,630,879$ 4,183,575$

Parking and Ground Transportation 12,009,701$ 12,817,675$ 10,012,455$ 7,361,177$ 14,004,586$

Total: 32,621,662$ 35,203,110$ 31,075,057$ 24,000,761$ 37,106,440$

(unaudited)

RENO-TAHOE AIRPORT AUTHORITY

PRINCIPAL REVENUE PAYERS

FOR THE YEARS ENDED JUNE 30, 2013-2022

76

2013 2014 2015 2016 2017

Landing fees 7,380,804$ 7,440,496$ 7,916,995$ 8,071,097$ 8,285,922$

Concession revenue 10,478,433 10,301,098 10,344,733 10,861,366 11,798,086

Parking and ground

transportation

8,914,030 8,983,926 9,515,946 10,519,785 11,316,885

Rentals 11,967,776 13,282,322 13,456,901 13,599,106 13,688,849

Reimbrusement for

Services

2,579,738 2,632,003 2,647,105 2,419,689 2,531,223

Toal Operating

Revenue

41,320,781 42,639,845 43,881,680 45,471,043 47,620,965

Interest Income 67,781 289,281 286,481 694,721 305,497

Total 41,388,562$ 42,929,126$ 44,168,161$ 46,165,764$ 47,926,462$

Continued

Note: Top revenue sources per the Statements of Revenues, Expenses and changes in net Position for the current

year including interest income and excluding other revenue.

RENO-TAHOE AIRPORT AUTHORITY

PRINCIPAL OPERATING REVENUE SOURCES

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

77

2018 2019 2020 2021 2022

Landing fees 9,397,172$ 9,719,482$ 10,077,732$ 8,948,847$ 10,584,517$

Concession revenue 12,802,725 13,086,886 11,301,837 9,628,195 15,257,011

Parking and ground

transportation

12,009,701 12,817,675 10,012,455 7,361,177 14,004,587

Rentals 13,838,446 14,078,153 16,534,688 15,715,644 15,073,157

Reimbrusement for

Services

2,416,793 2,671,073 2,397,717 1,823,280 3,000,059

Toal Operating

Revenue

50,464,837 52,373,269 50,324,429 43,477,143 57,919,331

Interest Income 461,370 2,168,829 2,324,420 (48,887)$ (1,490,220)$

Total 50,926,207$ 54,542,098$ 52,648,849$ 43,428,256$ 56,429,111$

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

RENO-TAHOE AIRPORT AUTHORITY

PRINCIPAL OPERATING REVENUE SOURCES

78

Year Signatory

Non-

Signatory

2022 3.04 3.04 73.00 73.00 40.66 6.21

2021 3.23 3.23 85.00 85.00 45.74 9.17

2020 3.23 3.23 78.00 78.00 55.31 8.46

2019 3.14 3.14 77.00 77.00 38.49 5.57

2018 2.95 2.99 77.00 77.00 35.14 5.63

2017 2.62 2.79 73.00 73.00 40.48 5.85

2016 2.78 2.94 70.00 70.00 46.72 6.56

2015 2.97 3.06 60.00 60.00 49.43 7.21

2014 2.80 2.78 55.00 (b) 55.00 (b) 53.24 7.31

2013 2.64 2.81 0.37 0.62 45.42 6.38

(a) Assessed per thousand pounds of FAA maximum certificated landed weight

(b) For fiscal year 2014, the Ramp Over Night fee changed to a flat fee amount per occurance.

Non-Signatory and Ramp Over Night Fees are charged at the budgeted amount.

Notes: The RTAA and certain airlines negotiated an Airline Use and Lease Agreement effective July 1, 1996

which remained in effect through June 20 2010. Starting on July 1, 2010, the RTAA and the airlines executed

a series of two five-year airline agreements effective through June 30, 2020, followed by an extension through June 30,

Signatory

RON (Ramp Over Night) (a)

Non-

Signatory

RENO-TAHOE AIRPORT AUTHORITY

REVENUE RATES AND COST PER ENPLANEMENTS

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

Landing Fee (a)

Signatory

Cost per

Enplanement

Signatory

Terminal

Rental Rate

Average

79

YEAR 2022 2021 2020 2019 2018

2017 2016 2015 2014 2013

Gross Pledged Revenues

(1)

63,234,274$ 44,522,461$ 52,909,801$ 54,064,139$ 53,645,091$ 50,148,794$ 47,661,886$ 45,766,095$ 44,371,827$ 43,026,765$

Transfers- CFC Expenses

713,649 447,935 417,741 642,557 - - - - - -

G/L on Sale of Assets

(15,080) (41,838) (28,196) (25,070) (169,208) (13,298) (105,471) (29,533) (5,631) -

Airline Revenue Sharing

5,202,856 2,797,784 2,452,933 4,214,022 4,352,412 3,176,955 2,347,074 1,494,648 1,213,722 1,587,800

35% Gaming Revenue

(439,671) (221,413) (286,561) (390,756) (374,379) (341,751) (374,991) (443,208) (462,963) (550,386)

Direct Operating Expense

(2)

(46,340,021) (42,205,572) (44,037,667) (42,552,009) (40,306,317) (38,112,913) (37,603,816) (35,856,069) (36,158,687) (34,527,241)

Net Pledged Revenue (Available for

Debt and Obligation Payments)

22,356,007$ 5,299,357$ 11,428,051$ 15,952,883$ 17,147,599$ 14,857,787$ 11,924,682$ 10,931,933$ 8,958,268$ 9,536,938$

Debt Service (Senior Lien Debt

Service)

2,250,450 2,247,975 2,249,125 2,248,900 2,247,300 2,249,463 2,310,285 2,521,300 2,516,500 2,523,900

Debt Service Coverage Ratio - Senior

Lien Debt Service

9.93 2.36 5.08 7.09 7.63 6.61 5.16 4.34 3.56 3.78

Net Pledged Revenue (Available for

Subordinate Notes)

20,105,557$ 3,051,382$ 9,178,926$ 13,703,983$ 14,900,299$ 12,608,324$ 9,614,397$ 8,410,633$ 6,441,768$ 7,013,038$

Pledged PFC Revenue

----1,812,790 1,813,919 1,808,804 2,079,176 1,491,202

Pledged Revenue (Available for

Subordinate Notes)

20,105,557 3,051,382 9,178,926 13,703,983 14,900,299 14,421,114 11,428,316 10,219,437 8,520,944 8,504,240

Debt Service (Subordinate Lien Debt

Service) - - - - -

3,139,393 3,140,055 3,134,943 4,150,028 2,777,586

Debt Service - Coverage Ratio -

Subordinate Lien Debt Service - - - - - 4.59 3.64 3.26 2.05 3.06

1) Gross Revenue includes operating revenue, investment income, CFC revenues, jet fuel tax, insurance reimbursements and gain (loss) on sale of capital assets

2) Direct operating expense excludes depreciation and reclamation expense.

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF DEBT AND OBLIGATION COVERAGES

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

Notes: Years Prior to 2015 have not been adjusted for GASB 68 to 71

80

2013 2014 2015 2016 2017

Operating Revenues $42,863,935 $44,208,178 $45,512,494 $47,294,719 $49,616,816

Trust Fund Investment

Interest Income 162,830 163,649 253,601 367,167 531,978

Gross Pledged Revenues 43,026,765 44,371,827 45,766,095 47,661,886 50,148,794

Transfers - General Purpose Fund

for LOI Bond Debt Service - - - - -

Transfers- Customer Facility

Charges for Operating Expenses

- - - - -

Operating Expenses (34,527,241) (36,158,687) (35,856,069) (37,603,816) (38,112,913)

G/L on Sale of Capital Assets - (5,631) (29,533) (105,471) (13,298)

Airline Revenue Share Prior Year 1,587,800 1,213,722 1,494,648 2,347,074 3,176,955

35% of Gaming Revenues (550,386) (462,963) (443,208) (374,991) (341,751)

Net Pledged Revenues - Senior

Lien Bonds $9,536,938 $8,958,268 $10,931,933 $11,924,682 $14,857,787

125% of Senior Lien Revenue

Bond Debt Service $3,154,875 $3,145,625 $3,151,625 $2,887,856 $2,811,829

Senior Lien Debt Service $2,523,900 $2,516,500 $2,521,300 $2,310,285 $2,249,463

Net Pledged Revenues - Subordinate

Lien Notes $7,016,041 $6,441,768 $8,410,633 $9,614,397 $12,608,324

Pledged Passenger Facility Charges 1,491,202 2,079,176 1,808,804 1,813,919 1,812,790

Pledged Revenues - Subordinate

Lien Notes $8,507,243 $8,520,944 $10,219,437 $11,428,316 $14,421,114

110% of Subordinate Lien

Debt Service $3,055,345 $4,559,531 $3,448,437 $3,454,061 $3,453,332

Subordinate Lien Debt Service $2,777,586 $4,145,028 $3,134,943 $3,140,055 $3,139,393

Rate Maintenance Minimum

Revenues $6,210,220 $7,705,156 $6,600,062 $6,341,917 $6,265,161

Continued

RENO-TAHOE AIRPORT AUTHORITY

RATE MAINTENANCE COVENANT PERFORMANCE

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

81

2018 2019 2020 2021 2022

Operating Revenues $52,809,309 $52,880,841 $50,669,726 $43,662,916 $58,064,505

Trust Fund Investment

Interest Income 835,781 1,183,298 2,240,075 1,018,347 1,247,655

Gross Pledged Revenues 53,645,090 54,064,139 52,909,801 44,681,263 59,312,160

Transfers - General Purpose Fund

for LOI Bond Debt Service -

Transfers- Customer Facility

Charges for Operating Expenses

- 642,557 417,741 447,935 713,649

Operating Expenses (40,306,317) (42,552,009) (44,037,667) (42,205,572) (46,340,021)

G/L on Sale of Capital Assets (169,208) (25,070) (28,196) (41,838) (15,080)

Airline Revenue Share Prior Year 4,352,412 4,214,000 2,452,933 2,797,784 5,202,856

35% of Gaming Revenues (374,379) (390,756) (286,561) (221,413) (439,671)

Net Pledged Revenues - Senior

Lien Bonds $17,147,598 $15,952,861 $11,428,051 $5,458,159 $18,433,893

125% of Senior Lien Revenue

Bond Debt Service $2,809,125 $2,811,125 $2,811,406 $2,809,969 $2,813,063

Senior Lien Debt Service $2,247,300 $2,248,900 $2,249,125 $2,247,975 $2,250,450

Net Pledged Revenues - Subordinate

Lien Notes $14,900,298 $13,703,961 $9,178,926 $3,210,184 $16,183,443

Pledged Passenger Facility Charges -----

Pledged Revenues - Subordinate

Lien Notes $14,900,298 $13,703,961 $9,178,926 $3,210,184 $16,183,443

110% of Subordinate Lien

Debt Service $ - $ - $ - $ - $ -

Subordinate Lien Debt Service $ - $ - $ - $ - $ -

Rate Maintenance Minimum

Revenues $2,809,125 $2,811,125 $2,811,406 $2,809,969 $2,813,063

RENO-TAHOE AIRPORT AUTHORITY

RATE MAINTENANCE COVENANT PERFORMANCE

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

82

2013 2014 2015 2016 2017

Outstanding Debt

Revenue bonds 25,025,000$ 23,715,000$ 22,360,000$ 20,690,000$ 19,435,000$

Unamortized premium 969,422 894,851 820,280 - -

Notes payable 18,015,000 15,615,000 8,937,000 6,037,000 3,057,000

Total outstanding debt 42,522,998$ 40,224,851$ 32,117,280$ 26,727,000$ 22,492,000$

Enplaned Passengers 1,756,471 1,658,187 1,656,293 1,778,611 1,909,187

Outstanding debt per

enplaned passenger 24$ 24$ 19$ 15$ 12$

Debt Service

Principal 3,710,000$ 5,125,000$ 4,320,000$ 4,235,000$ 4,772,000$

Interest 1,591,486 1,541,528 1,336,243 588,367 616,855

Total debt service 5,301,486$ 6,666,528$ 5,656,243$ 4,823,367$ 5,388,855$

Total Expenses 69,177,815 73,521,156 72,190,557 72,514,723 73,017,716

Ratio of debt service

to total expenses 7.66% 9.07% 7.84% 6.65% 7.38%

Continued

Note 1: No debt-to-personal-income ratio is shown because personal income information is not available for the

RTAA trade area. See schedule of Operational Statistical Summary for enplanements.

Note 2: Debt Service for 2013 reflects a reduced by $217,400 for capitalized interest funded from note proceeds

associated with the Series A, 2011 Subordinate Notes, Fixed Rate

Note 3: Debt Service for 2022 reflects minimum debt service requirements for the year. RTAA used federal

stimulus funds under the CARES act and paid off the full principal amount.

RENO-TAHOE AIRPORT AUTHORITY

RATIOS OF OUTSTANDING DEBT AND DEBT SERVICE

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

83

2018 2019 2020 2021 2022

Outstanding Debt

Revenue bonds 17,720,000$ 15,960,000$ 14,150,000$ 12,290,000$ -$

Unamortized premium - - - - -

Notes payable - - - - -

Total outstanding debt 17,720,000$ 15,960,000$ 14,150,000$ 12,290,000$ -$

Enplaned Passengers 2,064,968 2,149,759

1,690,171 1,231,616 2,079,807

Outstanding debt per

enplaned passenger 9$ 7$ 8$ 10$ -$

Debt Service

Principal 1,760,000$ 1,810,000$ 1,860,000$ 1,910,000$ 1,965,000$

Interest 487,308 438,900 389,125 337,975 285,450

Total debt service 2,247,308$ 2,248,900$ 2,249,125$ 2,247,975$ 2,250,450$

Total Expenses 75,311,669 70,560,599 73,189,668 69,777,962 71,818,990

Ratio of debt service

to total expenses 2.98% 3.19% 3.07% 3.22% 3.13%

Note 1: No debt-to-personal-income ratio is shown because personal income information is not available for the

RTAA trade area. See schedule of Operational Statistical Summary for enplanements.

Note 2: Debt Service for 2013 reflects a reduced by $217,400 for capitalized interest funded from note proceeds

associated with the Series A, 2011 Subordinate Notes, Fixed Rate

Note 3: Debt Service for 2022 reflects minimum debt service requirements for the year. RTAA used federal

stimulus funds under the CARES act and paid off the full principal amount.

RENO-TAHOE AIRPORT AUTHORITY

RATIOS OF OUTSTANDING DEBT AND DEBT SERVICE

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

84

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Nevada

County

Churchill 24,375 24,063 23,989 24,200 24,198 24,230 24,440 24,909 25,516 25,723

Douglas 46,996 47,118 47,536 47,710 48,020 48,309 48,467 48,905 49,488 49,870

Humboldt 17,048 17,363 17,279 17,019 16,842 16,826 16,786 16,831 17,285 17,648

Lyon 51,327 51,557 51,789 52,585 53,179 54,122 55,808 57,510 59,235 60,903

Pershing 6,749 6,877 6,698 6,634 6,560 6,508 6,666 6,725 6,650 6,741

Storey 3,935 3,942 3,912 3,987 4,051 4,006 4,029 4,123 4,104 4,143

Washoe 429,908 433,731 440,078 446,903 453,616 460,587 465,735 471,519 486,492 493,392

Carson City 54,838 54,080 54,522 54,521 54,742 54,745 55,414 55,916 58,639 58,993

Subtotal 635,176 638,731 645,803 653,559 661,208 669,333 677,345 686,438 707,409 717,413

California

County

Alpine 1,129 1,159 1,116 1,110 1,071 1,120 1,101 1,129 1,204 1,235

El Dorado 180,561 181,737 183,087 184,452 185,625 188,987 190,678 192,843 191,185 193,221

Lassen 33,658 32,163 31,749 31,345 30,870 31,163 30,802 30,573 32,730 33,159

Mono 14,348 14,074 13,997 13,909 13,981 14,168 14,250 14,444 13,195 13,247

Nevada 98,292 98,200 98,893 98,877 99,107 99,814 99,696 99,755 102,241 103,487

Placer 361,682 367,309 371,694 375,391 380,531 386,166 393,149 398,329 404,739 412,300

Plumas 19,399 18,859 18,606 18,409 18,627 18,742 18,804 18,807 19,790 19,915

Sierra 3,086 3,047 3,003 2,967 2,947 2,999 2,987 3,005 3,236 3,283

Subtotal 712,155 716,548 722,145 726,460 732,759 743,159 751,467 758,885 768,320 779,847

Total 1,347,331 1,355,279 1,367,948 1,380,019 1,393,967 1,412,492 1,428,812 1,445,323 1,475,729 1,497,260

Percentage

increase

0.47% 0.59% 0.93% 0.88% 1.01% 1.33% 1.16% 1.16% 2.10% 1.46%

Unemployment rate

Washoe County

11.0% 9.4% 7.6% 6.3% 5.0% 3.5% 2.3% 3.2% 4.9% 3.1%

Source: US Census Bureau - Quickfacts

Nevada Department of Employment, Training, and Rehabilitation

http://www.census.gov/quickfacts/table/PST045215/

http://nevadaworkforce.com/CES

RENO-TAHOE AIRPORT AUTHORITY

POPULATION IN AIR TRADE AREA

FOR THE CALENDAR YEARS 2012-2021

(unaudited)

85

Employer Rank Employees Rank Employees

Renown Regional Medical Center 1 1,000-4,999 4 2,500-2,999

Peppermill Hotel Casino-Reno 2 1,000-4,999 5 2,000-2,499

Nugget Casino Resort 3 1,000-4,999 16 1,000-1,499

Grand Sierra Resort & Casino 4 1,000-4,999 13 1,000-1,499

Saint Mary's Regional Medical Center 5 1,000-4,999 10 1,500-1,999

Eldorado Resort Casino 6 1,000-4,999 11 1,000-1,499

Silver Legacy Resort Casino 7 1,000-4,999 8 1,500-1,999

University of Nevada-Reno 8 1,000-4,999 2 4,000-4,499

International Game Technology 9 1,000-4,999 7 2,000-2,499

AMERCO 10 1,000-4,999 - -

Nevada Revised Statute Chapter 612 stipulates that actual employment for individual employers may not be published.

Source: Nevada Workforce & the Department of Employment, Training, and Rehabilitation, 2021 second half.

Calendar year 2021 Calendar year 2011

RENO-TAHOE AIRPORT AUTHORITY

PRINCIPAL EMPLOYERS WITHIN AIR TRADE AREA

FOR THE CALENDAR YEARS ENDED 2021 AND 2011

(unaudited)

86

Year

Board of

Trustees*

Airfield

Operations

Terminal

Building

Maintenance

Police/

Security Parking

Aircraft

Rescue and

Firefighting Administration Total

2022 9.0 56.0 64.5 44.5 15.0 22.0 64.5 275.5

2021 9.0 56.0 67.5 44.5 16.0 20.0 76.5 280.5

2020 9.0 55.0 67.5 44.5 16.0 20.0 77.5 280.5

2019 9.0 55.0 67.5 44.0 16.0 20.0 75.0 277.5

2018 9.0 54.0 68.0 44.0 16.0 20.0 75.5 277.5

2017 9.0 52.0 68.0 43.0 15.0 20.0 74.5 272.5

2016 9.0 52.0 68.0 42.0 15.0 20.0 73.5 270.5

2015 9.0 52.0 68.0 42.0 15.0 20.0 73.5 270.5

2014 9.0 52.0 68.0 42.0 15.0 20.0 71.5 268.5

2013 9.0 50.0 69.0 43.0 15.0 20.0 70.5 267.5

* Board of Trustees Department comprises a nine-member Board of Trustees appointed by the City of Reno, City of Sparks,

Washoe County and the Reno-Sparks Convention & Visitors Authority, amd are not included in the total personnel complement

.

Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave).

Full-time equivalent employment is calculated by dividing total labor hours by 2,080. The amounts above

show the budgeted personnel complement for each fiscal year.

(unaudited)

as of Fiscal Year-End

RENO-TAHOE AIRPORT AUTHORITY

EMPLOYEES

FOR THE YEARS ENDED JUNE 30, 2013-2022

Full-time Equivalent Budgeted Employees

87

Year

Enplanements

Airport

Growth Landed Weights

Airport

Growth

Air Carrier

Operations

Airport

Growth

2022

2,079,807

68.9%

3,077,335

28.0%

44,896

24.8%

2021

1,231,616

-27.1%

2,403,819

-13.8%

35,962

-14.0%

2020

1,690,171

-21.4%

2,789,987

-8.2%

41,797

-12.9%

2019

2,149,759

4.1%

3,039,273

6.3%

47,970

-0.7%

2018

2,064,968

8.2%

2,859,499

1.8%

48,303

11.4%

2017

1,909,187

7.3%

2,808,680

8.0%

43,347

9.5%

2016

1,778,611

7.4%

2,599,963

8.8%

39,579

9.6%

2015

1,656,293

-0.1%

2,390,031

0.1%

36,122

4.1%

2014

1,658,187

-5.6%

2,388,387

-5.3%

34,687

-5.7%

2013

1,756,471

-1.4%

2,522,804

-5.6%

36,800

-8.3%

RENO-TAHOE AIRPORT AUTHORIT

Y

OPERATIONAL STATISTICAL SUMMARY

FOR THE YEARS ENDED JUNE 30, 2013 - 2022

(unaudited)

88

Scheduled Airline Enplanements Share

Percent

Change Enplanements Share

Percent

Change Enplanements Share

Percent

Change Enplanements Share

Percent

Change

Alaska / Horizon Air 113,819 6% 45% 124,581 8% 9% 178,579 11% 43% 204,286 11% 14%

Allegiant Air 7,590 0% 282% 21,578 1% 184% 20,061 1% -7% 19,047 1% -5%

American 201,472 11% 8% 208,919 13% 4% 221,434 13% 6% 385,363 22% 74%

Continental - 0% -100% - 0% n.a - 0% n.a - 0% n.a

Delta 133,014 8% -20% 126,904 8% -5% 119,649 7% -6% 128,189 7% 7%

Frontier 271 0% n.a - 0% -100% - 0% n.a 165 0% n.a

JetBlue Airways 272 0% n.a - 0% -100% 3,346 0% n.a 41,143 2% 1130%

Mesa - 0% n.a - 0% n.a - 0% n.a - 0% n.a

Skywest - 0% n.a - 0% n.a - 0% n.a - 0% n.a

Southwest 945,143 54% -2% 815,160 49% -14% 734,786 44% -10% 763,006 43% 4%

United 210,530 12% -5% 214,531 13% 2% 214,864 13% 0% 216,996 12% 1%

US Airways (America West

)

143,559 8% 1% 144,760 9% 1% 154,331 9% 7% - 0% -100%

Volaris - 0% n.a - 0% n.a 6,959 0% n.a 17,070 1% 145%

Other 1,073 0% 5% 1,754 0% 63% 2,284 0% 30% 3,346 0% 46%

1,756,743 100% -1% 1,658,187 100% -6% 1,656,293 100% 0% 1,778,611 100% 7%

Rounding errors may occur. Continued

20162014

RENO-TAHOE AIRPORT AUTHORITY

RENO-TAHOE INTERNATIONAL AIRPORT

ENPLANEMENTS AND MARKET SHARE BY SCHEDULED AIRLINE

FOR THE YEARS ENDED JUNE 30, 2013-2022

2013 2015

89

Scheduled Airline Enplanements Share

Percent

Change Enplanements Share

Percent

Change Enplanements Share

Percent

Change

Alaska / Horizon Air 226,117 12% 11% 212,427 10% -6% 208,312 10% -2%

Allegiant Air 31,504 2% 65% 30,663 1% -3% 41,681 2% 36%

American 370,451 19% -4% 383,996 19% 4% 384,766 18% 0%

Continental - 0% n.a - 0% n.a - 0% n.a

Delta 136,418 7% 6% 152,435 7% 12% 165,441 8% 9%

Frontier - 0% -100% 18,271 1% n.a 26,709 1% 46%

JetBlue Airways 77,686 4% 89% 80,494 4% 4% 78,164 4% -3%

Mesa - 0% n.a - 0% n.a - 0% n.a

Skywest - 0% n.a - 0% n.a - 0% n.a

Southwest 816,323 43% 7% 901,470 44% 10% 909,515 42% 1%

United 226,272 12% 4% 265,271 13% 17% 311,716 15% 18%

US Airways (America West

)

- 0% n.a - 0% n.a - 0% n.a

Volaris 20,966 1% 23% 17,234 1% -18% 19,819 1% 15%

Other 3,450 0% 3% 2,707 0% -22% 3,636 0% 34%

1,909,187 100% 7% 2,064,968 100% 8% 2,149,759 100% 4%

Continued

2018 20192017

RENO-TAHOE AIRPORT AUTHORITY

RENO-TAHOE INTERNATIONAL AIRPORT

ENPLANEMENTS AND MARKET SHARE BY SCHEDULED AIRLINE

FOR THE YEARS ENDED JUNE 30, 2013-2022

90

Scheduled Airline Enplanements Share

Percent

Change Enplanements Share

Percent

Change Enplanements Share

Percent

Change

Alaska / Horizon Air 172,563 10% -17% 120,292 10% -30% 198,399 10% 65%

Allegiant Air 35,224 2% -15% 29,316 2% -17% 33,008 2% 13%

American 347,656 21% -10% 246,791 20% -29% 362,636 17% 47%

Continental - 0% n.a - 0% n.a - 0% n.a

Delta 128,574 8% -22% 131,351 11% 2% 214,794 10% 64%

Frontier 19,390 1% -27% 24,976 2% 29% 33,071 2% 32%

JetBlue Airways 52,825 3% -32% 16,084 1% -70% 55,472 3% 245%

Mesa - 0% n.a - 0% n.a - 0% n.a

Skywest - 0% n.a - 0% n.a - 0% n.a

Southwest 658,668 39% -28% 460,904 37% -30% 833,339 40% 81%

United 253,093 15% -19% 175,966 14% -30% 294,366 14% 67%

US Airways (America West

)

- 0% n.a - 0% n.a - 0% n.a

Volaris 19,937 1% 1% 18,207 1% -9% 26,785 1% 47%

Other 2,241 0% -38% 7,729 1% 245% 27,948 1% 262%

1,690,171 100% -21% 1,231,616 100% -27% 2,079,818 100% 69%

20222020 2021

RENO-TAHOE AIRPORT AUTHORITY

RENO-TAHOE INTERNATIONAL AIRPORT

ENPLANEMENTS AND MARKET SHARE BY SCHEDULED AIRLINE

FOR THE YEARS ENDED JUNE 30, 2013-2022

91

Scheduled Airline

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Alaska / Horizon Ai

r

112,694 4% 49% 122,862 5% 62% 189,675 8% 68%

Allegiant Ai

r

7,650 0% n.a 24,413 1% n.a 23,003 1% 201%

America

n

206,613 8% 5% 213,251 9% 9% 233,599 10% 13%

Continental - 0% -100% - 0% -100% - 0% n.a

Delta 161,684 6% -21% 146,329 6% -29% 148,955 6% -8%

Frontie

r

- 0% n.a - 0% n.a - 0% n.a

JetBlue Airways - 0% n.a - 0% n.a 3,555 0% n.a

Southwes

t

1,190,140 47% -12% 989,574 41% -27% 864,660 36% -27%

United 237,421 9% -9% 236,595 10% -10% 235,831 10% -1%

US Airways (America West) 184,243 7% -1% 195,099 8% 5% 199,824 8% 8%

Volaris - 0% n.a - 0% n.a 8,141 0% n.a

Federal Express 226,398 9% 0% 281,383 12% 24% 290,218 12% 28%

United Parcel Service 170,193 7% 22% 162,298 7% 17% 168,878 7% -1%

Othe

r

25,768 1% 205% 16,584 1% 96% 23,692 1% -8%

n.a

2,522,804 100% -6% 2,388,388 100% -11% 2,390,031 100% -5%

Continued

Rounding errors may occur.

RENO-TAHOE AIRPORT AUTHORITY

RENO-TAHOE INTERNATIONAL AIRPORT

LANDED WEIGHTS AND MARKET SHARE BY SCHEDULED AIRLINE

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

2013 2014 2015

92

Scheduled Airline

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Alaska / Horizon Ai

r

212,173 8% 12% 234,218 8% 10% 213,477 7% -9%

Allegiant Ai

r

21,866 1% -5% 36,073 1% 65% 32,959 1% -9%

America

n

441,718 17% 89% 409,575 15% -7% 419,085 15% 2%

Continental - 0% n.a - 0% n.a - 0% n.a

Delta 144,923 6% -3% 157,875 6% 9% 168,798 6% 7%

Frontie

r

145 0% n.a - 0% -100% 19,339 1% n.a

JetBlue Airways 46,072 2% 1196% 87,084 3% 89% 94,135 3% 8%

Southwes

t

873,884 34% 1% 983,684 35% 13% 1,066,311 37% 8%

United 245,891 9% 4% 255,760 9% 4% 307,621 11% 20%

US Airways (America West) - 0% -100% - 0% n.a - 0% n.a

Volaris 19,612 1% 141% 23,234 1% 18% 17,752 1% -24%

Federal Express 329,884 13% 14% 339,683 12% 3% 239,569 8% -29%

United Parcel Service 225,495 9% 34% 238,302 8% 6% 236,563 8% -1%

Othe

r

38,300 1% 62% 43,193 2% 13% 43,890 2% 2%

2,599,963 100% 9% 2,808,680 100% 8% 2,859,499 100% 2%

Continued

RENO-TAHOE AIRPORT AUTHORITY

RENO-TAHOE INTERNATIONAL AIRPORT

LANDED WEIGHTS AND MARKET SHARE BY SCHEDULED AIRLINE

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

2016 2017 2018

93

Scheduled Airline

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Landed

Weights

(000) lbs Share

Percent

Change

Alaska / Horizon Ai

r

237,323 8% 11% 220,316 8% -7% 171,489 7% -22% 226,813 7% 32%

Allegiant Ai

r

43,831 1% 33% 40,800 1% -7% 45,311 2% 11% 41,859 1% -8%

America

n

418,385 14% 0% 412,245 15% -1% 334,152 14% -19% 413,665 13% 24%

Continental - 0% n.a - 0% n.a - 0% n.a - 0% n.a

Delta 180,568 6% 7% 166,235 6% -8% 241,266 10% 45% 252,886 8% 5%

Frontie

r

25,565 1% 32% 20,019 1% -22% 30,273 1% 51% 34,922 1% 15%

JetBlue Airways 89,585 3% -5% 70,163 3% -22% 33,396 1% -52% 80,321 3% 141%

Southwes

t

1,052,732 35% -1% 883,824 32% -16% 626,539 26% -29% 936,363 30% 49%

United 353,941 12% 15% 317,803 11% -10% 241,228 10% -24% 336,502 11% 39%

US Airways (America West) - 0% n.a - 0% n.a - 0% n.a - 0% n.a

Volaris 20,807 1% 17% 21,948 1% 5% 22,392 1% 2% 30,993 1% 38%

Federal Express 279,851 9% 17% 273,322 10% -2% 284,219 12% 4% 305,799 10% 8%

United Parcel Service 287,723 9% 22% 316,735 11% 10% 313,617 13% -1% 314,538 10% 0%

Othe

r

48,965 2% 12% 46,578 2% -5% 59,737 2% 28% 102,676 3% 72%

3,039,273 100% 6% 2,789,988 100% -8% 2,403,619 100% -14% 3,077,337 100% 28%

2021 2022

RENO-TAHOE AIRPORT AUTHORITY

RENO-TAHOE INTERNATIONAL AIRPORT

LANDED WEIGHTS AND MARKET SHARE BY SCHEDULED AIRLINE

FOR THE YEARS ENDED JUNE 30, 2013-2022

(unaudited)

2019 2020

94

Reno-Tahoe International Airport

Location: 2001 East Plumb Lane

4 miles southeast of Downtown Reno

Airport Code: RNO

Elevation: 4,415 ft

Area: 1,450 acres

Runways and Facilities:

Runway 16R/34L 11,001 x 150 ft

Runway 16L/34R 9,000 x 150 ft

Runway 7/25 6,102 x 150 ft

FAA staffs and operates one 24-hour Air Traffic Control Tower

Reno Stead Airport

Location: 11 miles northwest of Downtown Reno

Elevation: 5,050 ft

Area: 5,000 acres

Runways and Facilities:

Runway 08/26 7,608 x 150 ft

Runway 14/32 9,000 x 150 ft

Created in 1977 by State Legislature

Nine-member Board

RENO-TAHOE AIRPORT AUTHORITY

CAPITAL ASSET INFORMATION

AS OF JUNE 30, 2022

(unaudited)

95

Terminal Space - square feet

Airlines 176,742 176,871 176,871 176,871 169,230 175,985 175,221 175,221 175,221 175,221

Ground Transportation 2,883 2,883 2,883 2,883 2,883 2,883 2,883 2,883 2,883 2,883

Concession Space

37,604 37,604 37,604 37,604 37,604 37,167 37,167 37,167 37,167 37,167

Public Areas 196,189 196,189 196,189 196,189 196,189 196,959 197,723 197,723 197,723 197,723

RTAA 44,885 44,885 44,885 44,885 52,397 45,309 45,309 45,309 45,309 45,309

Unfinished Areas - - - - - - - - - -

458,303 458,432 458,432 458,432 458,303 458,303 458,303 458,303 458,303 458,303

Passenger Boarding Gates 22 22 23 23 23 23 23 23 23 23

Parking - Number of Spaces

Short -Term (b) 296 296 295 295 296 300 300 450 450 450

Long-Term 1,630 1,630 1,630 1,630 1,630 1,650 1,650 1,650 1,650

1,650

Surface Lot 1,462 1,462 1,469 1,462 1,462 1,532 1,532 1,532 1,532

1,532

3,388 3,388 3,394 3,387 3,388 3,482 3,482 3,632 3,632 3,632

Cargo - square feet

Building 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500

Landside 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000

Airside 591,250 591,250 591,250 591,250 591,250 591,250 591,250 591,250 591,250 591,250

808,750 808,750 808,750 808,750 808,750 808,750 808,750 808,750 808,750 808,750

(a) In 2016, the decrease in short-term parking spaces reflect the expansion of the rental car return area in the parking garage to accommodate increasing rental car activity.

(b) In 2017, the increase in airline square footage reflects the installation of kiosks in the public queuing area.

(c) In 2018, the decrease in parking spaces reflects a reconfiguration of the parking areas to maximize efficiency.

Source: Terminal Square Footage - Financial Scenario Model FY 2022 Settlement -Terminal Rent Tab

RENO-TAHOE AIRPORT AUTHORITY

CAPITAL ASSET INFORMATION

AS OF JUNE 30, 2013-2022

(unaudited)

96

Compliance

Section

FEDERAL AWARDS

97

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Board of Trustees

Reno-Tahoe Airport Authority

Reno, Nevada

We have audited, in accordance with the auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing Standards

issued by the Comptroller General of the United States, the financial statements of the business-type

activities of the Reno-Tahoe Airport Authority (the “Authority”) as of and for the year ended June 30, 2022,

and the related notes to the financial statements, which collectively comprise the Authority’s basic financial

statements, and have issued our report thereon dated November 30, 2022.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Authority's internal

control over financial reporting (internal control) as a basis for designing audit procedures that are

appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,

but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management

or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in

internal control, such that there is a reasonable possibility that a material misstatement of the entity’s

financial statements will not be prevented, or detected and corrected on a timely basis. A significant

deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a

material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this

section and was not designed to identify all deficiencies in internal control that might be material

weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any

deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses

or significant deficiencies may exist that have not been identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Authority's financial statements are free from

material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,

contracts, and grant agreements, noncompliance with which could have a direct and material effect on the

financial statements. However, providing an opinion on compliance with those provisions was not an

objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed

no instances of noncompliance or other matters that are required to be reported under Government Auditing

Standards.

98

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance

and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal

control or on compliance. This report is an integral part of an audit performed in accordance with

Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,

this communication is not suitable for any other purpose.

Crowe LLP

Indianapolis, Indiana

November 30, 2022

99

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH

MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE

Board of Trustees

Reno-Tahoe Airport Authority

Reno, Nevada

Report on Compliance for Each Major Federal Program

Opinion on Major Federal Program

We have audited the Reno-Tahoe Airport Authority’s (the “Authority”) compliance with the types of

compliance requirements described in the OMB Compliance Supplement that could have a direct and

material effect on the Authority’s major federal program for the year ended June 30, 2022. The Authority’s

major federal program is identified in the summary of auditor’s results section of the accompanying

schedule of findings and questioned costs.

In our opinion, the Authority complied, in all material respects, with the compliance requirements referred

to above that could have a direct and material effect on its major federal program for the year ended June

30, 2022.

Basis for Opinion on Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the

United States of America (GAAS); the standards applicable to financial audits contained in Government

Auditing Standards issued by the Comptroller General of the United States (Government Auditing

Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform

Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform

Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in

the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the Authority and to meet our other ethical responsibilities, in

accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major

federal program. Our audit does not provide a legal determination of the Authority’s compliance with the

compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions

of its federal awards applicable to its federal programs.

100

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the

compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion

on the Authority’s compliance based on our audit. Reasonable assurance is a high level of assurance but

is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with

GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material

noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is

higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control. Noncompliance with the compliance requirements

referred to above is considered material, if there is a substantial likelihood that, individually or in the

aggregate, it would influence the judgment made by a reasonable user of the report on compliance about

the Authority’s compliance with the requirements of the major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform

Guidance, we

x exercise professional judgment and maintain professional skepticism throughout the audit.

x identify and assess the risks of material noncompliance, whether due to fraud or error, and design

and perform audit procedures responsive to those risks. Such procedures include examining, on a

test basis, evidence regarding the Authority’s compliance with the compliance requirements

referred to above and performing such other procedures as we considered necessary in the

circumstances.

x obtain an understanding of the Authority’s internal control over compliance relevant to the audit in

order to design audit procedures that are appropriate in the circumstances and to test and report

on internal control over compliance in accordance with the Uniform Guidance, but not for the

purpose of expressing an opinion on the effectiveness of the Authority’s internal control over

compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal

control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over

compliance does not allow management or employees, in the normal course of performing their assigned

functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a

federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,

or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility

that material noncompliance with a type of compliance requirement of a federal program will not be

prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over

compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type

of compliance requirement of a federal program that is less severe than a material weakness in internal

control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s

Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies

in internal control over compliance that might be material weaknesses or significant deficiencies in internal

control over compliance. Given these limitations, during our audit we did not identify any deficiencies in

internal control over compliance that we consider to be material weaknesses, as defined above. However,

material weaknesses or significant deficiencies in internal control over compliance may exist that were not

identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control

over compliance. Accordingly, no such opinion is expressed.

101

The purpose of this report on internal control over compliance is solely to describe the scope of our testing

of internal control over compliance and the results of that testing based on the requirements of the Uniform

Guidance. Accordingly, this report is not suitable for any other purpose.

Crowe LLP

Indianapolis, Indiana

November 30, 2022

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF EXPENDITURES OF FEDERAL

AWARDS FOR THE YEAR ENDED JUNE 30, 2022

ASSISTANCE FEDERAL REIMBURSEMENTS RECEIVED

PERCENT OF LISTING PROJECT GRANT July 1, 2021 to Cumulative July 1, 2021 to Cumulative

DESCRIPTION OF PROJECT PARTICIPATION NUMBER NUMBER AMOUNT June 30, 2022 Thru June 30, 2022 June 30, 2022 Thru June 30, 2022

United States Department of Transportation

Federal Aviation Administration

Airport Improvement Program

Construction

Reno Runway 16R-34L Reconstruction Phase 2 93.75% 20.106 3-32-0017-105 9,590,838 5,830,850 9,590,838 5,830,850 9,590,838

Reno Runway 16R-34L Reconstruction Phase 2 100.00% 20.106 3-32-0017-106 31,705,245 16,214,413 30,494,263 16,235,539 30,515,451

VALE eGSE Installation 100.00% 20.106 3-32-0017-108 1,239,000 77,739

1,234,421 50,212

1,234,421

Reno CARES Act Grant 100.00% 20.106 3-32-0017-107 30,957,866 1,841,025 9,502,368 3,125,025 9,512,368

Taxiway B & C Design 100.00% 20.106 3-32-0017-109 455,032

400,269

435,804

Reno CRRSA 100.00% 20.106 3-32-0017-110 6,146,847 6,146,847 6,146,847 6,146,847 6,146,847

Reno CRRSA Concessions 100.00% 20.106 3-32-0017-111 463,098

463,098

Reno ARP

A Act 100.00% 20.106 3-32-0017-112 16,653,997 4,508,985 4,508,985 4,518,985 4,518,985

Reno ARPA Consessions 100.00% 20.106 3-32-0017-114 1,852,390 -

-

132,122

Reconst

ruct Apron - Design 93.75% 20.106 3-32-0018-038 1,031,773 19,124

1,031,773 400

1,031,773

Taxiway A and Apron Phase 1 100.00% 20.106 3-32-0018-039 4,838,133 735,669 4,727,778 413,831 4,727,778

Stead CARES Act Grant 100.00% 20.106 3-32-0018-040 30,000

15,000

30,000

15,000

30,000

Apron and T

axiway A Phase 3 100.00% 20.106 3-32-0018-041 3,659,228 3,588,930 3,588,930 3,588,930 3,588,930

Stead CRRSA 100.00% 20.106 3-32-0018-043 23,000

23,000

S

tead Reconstruction Apron 100.00% 20.106 3-32-0018-044 1,173,333 1,125,308 1,125,308 1,125,308 1,125,308

Stead ARPA Act 100.00% 20.106 3-32-0018-045 59,000 59,000 59,000 59,000 59,000

109,878,780

41,049,257 72,926,878 42,163,951 73,135,723

Unite

d States Department of Homeland Secur

ity

Transportation Security Administration

Aviation and Transportation Security Act

Security

National Explosives Detection Canine Team Program Fixed 97.072 HSTS02-15-H-NCP471 1,047,875 151,500 1,132,594 151,500 1,132,594

Law Enforcement Officer Reimbursement Agreement Program Fixed 97.090 HSTS02-16-H-SLR658 1,672,573 284,530

1,730,110 284,530

1,730,110

2,720,448 436,030

2,862,704 436,030

2,862,704

Department of Justice

Criminal Division

Department of Justice Asset Forfeiture Program

Equitable Sharing

Direct Payments for Specified Use Fixed 16.922 15-5042-0-2-752 33,085 1,411 34,496 1,411 32,279

112,632,313

$ 41,486,698$ 75,824,078$ 42,601,392$ 76,030,706$

S

ee accompanying notes to Supplementary Schedule of Expenditures of Federal Awards

REIMBURSEABLE EXPENSES

102

RENO-TAHOE AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2022

1.

Basis of Presentation:

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award

activity of the Authority under programs of the federal government for the year ended June 30, 2022.

The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code

of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected

portion of the operations of the Authority, it is not intended to and does not present the financial position,

changes in net position, or cash flows of the Authority.

2.

Summary of Significant Accounting Policies:

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such

expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein

certain types of expenditures are not allowable or are limited as to reimbursement.

3.

Indirect Cost Rate:

The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the

Uniform Guidance.

4.

Special Tests and Provisions:

Special tests and provisions for the Airport Improvement Program (AIP) include review of the

Authority's policy for using airport revenue to determine whether all airport revenue is accounted for

and used for the capital or operating costs of the airport.

5.

Subrecipients:

The Authority did not have any federal awards that were passed through to subrecipients for the year

ended June 30, 2022.

103

104

RENO-TAHOE AIRPORT AUTHORITY

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year ended June 30, 2022

Section 1 – Summary of Auditor’s Results

Financial Statements

Type of auditor’s report issued: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? Yes X No

Significant deficiencies identified not

considered to be material weaknesses? Yes X None Reported

Noncompliance material to financial statements noted? Yes X No

Federal Awards

Internal Control over major programs:

Material weakness(es) identified? Yes X No

Significant deficiency(ies) identified not

considered to be material weaknesses?

Yes X None Reported

Type of auditor’s report issued on compliance for

major programs: Unmodified

Any audit findings disclosed that are required to be

reported in accordance with 2 CFR 200.516(a)? Yes X No

Identification of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster

20.106 U.S. Department of Transportation: Federal Aviation Administration:

Airport Improvement Program (including COVID-19 funding)

Dollar threshold used to distinguish between Type A and Type B programs: $ 1,278,042

Auditee qualified as low-risk auditee? X Yes No

Section II – Financial Statement Findings

None reported.

Section III – Federal Award Findings and Questioned Costs

None reported.

PASSENGER FACILITY

CHARGES

105

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH

REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY

CHARGE (PFC) PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE AND THE SCHEDULE OF PASSENGER

FACILITY CHARGES COLLECTED AND EXPENDED

Board of Trustees

Reno-Tahoe Airport Authority

Reno, Nevada

Report on Compliance of Passenger Facility Charges

Opinion on Passenger Facility Charge Program

We have audited the Reno-Tahoe Airport Authority’s (the “Authority”) compliance with the compliance

requirements described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the

Federal Aviation Administration (“Guide”), that could have a direct and material effect on its passenger

facility charge program for the year ended June 30, 2022.

In our opinion, the Authority complied, in all material respects, with the compliance requirements referred

to above that could have a direct and material effect on its passenger facility charge program for the year

ended June 30, 2022.

Basis for Opinion on Passenger Facility Charge Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the

United States of America (GAAS); the standards applicable to financial audits contained in Government

Auditing Standards issued by the Comptroller General of the United States (Government Auditing

Standards); and the audit requirements of the Guide. Our responsibilities under those standards and the

Guide are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our

report.

We are required to be independent of the Authority and to meet our other ethical responsibilities, in

accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the

passenger facility charge program. Our audit does not provide a legal determination of the Authority’s

compliance with the Guide referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design,

implementation, and maintenance of effective internal control over compliance with the requirements of

laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the

Authority’s passenger facility charge program.

106

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the

compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion

on the Authority’s compliance based on our audit. Reasonable assurance is a high level of assurance but

is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with

GAAS, Government Auditing Standards, and the Guide will always detect material noncompliance when it

exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the

override of internal control. Noncompliance with the compliance requirements referred to above is

considered material, if there is a substantial likelihood that, individually or in the aggregate, it would

influence the judgment made by a reasonable user of the report on compliance about the Authority’s

compliance with the requirements of the passenger facility charge program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Guide, we

x exercise professional judgment and maintain professional skepticism throughout the audit.

x identify and assess the risks of material noncompliance, whether due to fraud or error, and

design and perform audit procedures responsive to those risks. Such procedures include

examining, on a test basis, evidence regarding the Authority’s compliance with the compliance

requirements referred to above and performing such other procedures as we considered

necessary in the circumstances.

x obtain an understanding of the Authority’s internal control over compliance relevant to the

audit in order to design audit procedures that are appropriate in the circumstances and to test

and report on internal control over compliance in accordance with the Guide, but not for the