WILLIAMS GATEWAY AIRPORT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Years Ended June 30, 2005 and 2004

Business-type activities
All of WGAA’s activities are classified as business-type activities. Except for a substantial increase in fuel
sales, the financial operations of WGAA did not change significantly during the year. The $7,117,741
decrease in net assets was 17.7% less than the reduction in net assets last year. The change came
about as indicated below by the following elements of the revenues and expenses:
Williams Gateway Airport Authority’s Changes in Net Assets
2005
Revenues:
Charges for sales and services (gross)
Lease income
Capital grants and contributions
Operating grants and contributions
Other
Total revenues

12,987,564
2,268,373
4,081,130
147,766
288,897
19,773,730

Expenses
Cost of sales
Depreciation
Other operating expenses
Interest expense on loans from member governments
Other non-operating expenses
Total expenses

9,110,114
7,528,876
8,482,693
1,399,820
369,968
26,891,471

Increase (decrease) in net assets
Net assets at prior year-end
Net assets at year-end

2004
$

(7,117,741)
136,552,404
$129,434,663

10,255,728
2,069,647
2,489,081
82,234
117,554
15,014,244

6,936,862
7,301,957
8,114,704
1,260,311
53,923
23,667,757
(8,653,513)
145,205,917
$136,552,404

2003
$

6,570,257
2,033,298
3,244,808
202,878
12,051,241

4,138,051
7,911,306
7,373,716
1,090,642
467,480
20,981,195
(8,929,954)
154,135,871
$145,205,917

Revenues:
Charges for sales and services increased by $2,731,836 (27%), primarily due to increased fuel sales.
The volume of fuel sold was 1% less than the prior year, but increasing fuel prices were responsible for
the increase in fuel sales from the prior year; Lease income was up $198,726. Capital grants and
contributions were up by $1,592,049 (64%). The amount under operating grants represents the spending
during the fiscal year under the marketing grant contributed by the City of Phoenix Aviation Department.
Other revenues increased by $171,343 mostly as a result of a one-time fire suppression connection fee.

Revenues
11.5%

Charges for sales
and services (gross)
Lease income

20.6%

0.7%
1.5%

65.7%

5

Capital grants and
contributions
Operating grants
and contributions
Other

WILLIAMS GATEWAY AIRPORT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Years Ended June 30, 2005 and 2004

Expenses:
Cost of sales increased by $2,173,252 (31%), mostly reflecting the increased cost of the fuel sold.
Depreciation expense increased $226,919. The increase in depreciation expense is due to acquisition of
new assets. Other operating expenses increased by $367,989 (5%). $128,966 of that represented
increased personnel costs, $96,741 was for increased equipment rental and other equipment expenses,
$48,204 was bank fees related to increased sales paid via credit cards, and $40,614 represented
increased repair and maintenance costs. Interest expense on loans from member governments
increased by $139,509, reflecting the accumulation of accrued interest and additional interest relating to
annual additions to these loans from the member governments.

5.2%

Expenses

1.4%

Cost of sales
33.9%

Depreciation
31.5%

Other operating expenses
Interest expense on loans from
member governments
Other non-operating expenses
28.0%

Budget
WGAA staff prepares a budget annually. It is submitted to the Board of Directors for approval during the
spring of each year. The budget is used as a management tool; it is not a legally binding document.
During the fiscal year, the budget and monthly comparisons of actual activity to budget were converted
from a budgetary basis of accounting to an accrual basis of accounting. Although the budget is not
legally adopted, it is an important management tool used throughout the fiscal year. See page 29 for a
presentation of the budget as supplementary information.

Capital Assets and Debt Administration
Capital assets (net of depreciation)
WGAA’s capital assets totaled $177,112,508 (net of accumulated depreciation). The capital assets
include land; runways, taxiways, and apron areas; buildings; improvements; machinery and equipment. A
large majority of these assets were contributed to the airport directly or were purchased with the aid of
federal and state grants. Total capital assets, net decreased by less than 1% during the fiscal year.
Capital assets (net of depreciation)

Land and land improvements
Buildings and improvements
Machinery and equipment
Construction in Progress
Total capital assets, net

2005
$ 81,514,058
89,746,119
1,726,653
4,125,678
$ 177,112,508

6

2004
$ 81,979,080
88,600,690
2,110,589
5,676,519
$ 178,366,878

2003
$ 81,966,448
87,070,976
2,387,134
8,133,137
$ 179,557,695