Sally Lyon and Staff August 26, 2015

OPERATING REVENUES AND OTHER INCOME BUDGET FY 2016

OPERATING EXPENDITURES BUDGET FY 2016

Objective for the meeting is to review budget assumptions and the draft FY 2016 Budget Staff has additional information on the ten budget opportunities that were discussed at the May Budget Workshop Provide direction to staff on flagged budget items Other items the Board will like to discuss before adoption of the Budget at the September 30, 2015 regular Board meeting FY 2016 BUDGET OPPORTUNITIES DISCUSSION

1. Warehouse Building Upgrades (1.1 & 3.4) Effort to make building more viable and marketable to future tenants Removed funding for esthetic upgrades (building was recently painted) Project now focuses on enhanced utility and safety of building (including: ADA, Fire Suppression improvements) Reduced Budget estimate to $250,000 down (included in the Budget) from $500,000 - $700,000 proposed in May STRATEGY 1: SITE AND FACILITIES

2. Maintenance Building Addition (1.1/1) Current maintenance shop is 19 years old Equipment currently stored in multiple locations (two T-hangars) Multiple locations make maintenance challenging Enhances safety by a more efficient layout of equipment and tools (recommendation by SMS consultant) Projected Cost in May was $750,000. After refining by Project Manager, project estimate: $420,000 (included in the Budget)

3. Sustainability Management Plan (1.1/1, 5, 7, 8) Staff proposes Phase 1: Greenhouse Gas Inventory A Greenhouse Gas Inventory will establish a baseline for the District Potential to reduce our current carbon footprint May Budget estimate: $100,000. Current plan estimate of $35,000 (quotes from the Sierra Business Council with assistance from Mead & Hunt or other Aviation Planning Consultant) Budget also includes upgrades to Airport lighting to high efficiency LED lights. ($54,000) Both items are included in the Budget

4. Public Information and Outreach Manager (2, 3, 4/multiple) Will allow for consolidation of many public communication outreach services which are currently outsourced Will assist in successful launch into social media platforms Will manage website, newsletters, and public communication Will conduct pilot outreach and Airport user education programs At least 50% of the cost of the position is covered by an outside consultant, which would no longer be needed Full time benefited FTE: $95,000 (full cost included in the Budget) STRATEGY 2: STANDARDS OF SERVICE

5. Diesel Aircraft Technology for Home-based Rental Aircraft (3.3) Would remove 68F or 10H from regular training operations Fueled by JetA Would be a quiet training aircraft, which could reduce community noise annoyance Flight test was conducted in June; staff sent test results to the Board in early July. While test data shows the aircraft as quieter than 100 LL aircraft, the perceived annoyance reduction benefits are debatable Sierra Aero is optimistic about financial viability of the aircraft as a rental Substantial upfront cost to the District Cost: $275,000 (currently not included in FY 2016 Budget, could be a flagged item as more information becomes available.) STRATEGY 3: COMMUNITY BENEFIT

6. Community/Agency Partnerships (3.4/1) New collaboration program currently in development by the Ad Hoc committee Current examples: Boys and Girls Club of NLT, TART, Fire District and the TD Rec and Park District. New branch of the District’s sponsorship program Staff has created a separate line item in the Budget for this program. Budget includes: $215,000 (already committed: $50,000 to the BGCNLT and $65,000 to TART) Staff proposes to flag this item, pending a process and application procedure

7. Tahoe Nordic Collaboration-Snowcat & Trailer and Radios (3.4/1) Staff considering a partnership with the Tahoe Nordic Search and Rescue Team (TNSRT) Will provide access to remote beacons and navigation aides TNSRT are one of the primary responders in aircraft search and rescue incidents Enhanced level of safety for staff while providing general community benefit Estimated cost: $278,000 (currently not included in FY 2016 Budget, could be a flagged item as more information becomes available) Tahoe Nordic Search and Rescue is willing to make a presentation on this item

8. Open Space Endowment (3.2/1) Set up an endowment for future forest management of District land and recreational opportunities Partnership with the Tahoe Truckee Community Foundation to set up a perpetual funding source for forest management If the Board would like to move forward with this project, staff recommends flagging this item and inviting the Community Foundation to conduct a presentation Initial investment: $100,000 (included in the Budget)

9. Rideshare Bicycle Program Coordinated with Agencies (4.1/1) Develop a “Check – Out” bike program partnered with several agencies Town of Truckee and other local agencies have expressed interest in the program Could be expanded into the Tahoe Basin Potential cost: $100,000 (dependent on agency collaboration) This item is not currently included in FY 2016 Budget, but could be a flagged item as more information becomes available. STRATEGY 4: COMMUNICATION AND COMMUNITY OUTREACH

10. Airport Economic Impact Study (5, 6/1) Prepare a study to evaluate an economic value the Airport brings to the District Provide valuable insight for decision making Needs to be carefully prepared to assure the validity of results Estimate: $50,000 (included in the Budget) STRATEGY 5: DISTRICT FINANCES STRATEGY 6: BOARD GOVERNANCE

Prepare for budget adoption on September 30, 2015 regular Board meeting Any other items relevant to budget planning for FY 2016 Is there specific information needed on items prior to the final adoption of the FY 2016 Budget? NEXT STEPS…