Page 10 - BAA CAFR 2017

December 11, 2017

Board of Directors
Birmingham Airport Authority
5900 Messer Airport Highway
Birmingham, Alabama 35212

Ladies and Gentlemen:

It is our pleasure to present the Comprehensive Annual Financial Report (CAFR) of the Birmingham Airport
Authority (“the Authority”), for the fiscal year ended June 30, 2017. Responsibility for both the accuracy
of the data and completeness and fairness of the presentation, including all disclosures, rests with
management of the Authority. To the best of our knowledge and belief the enclosed information is
accurate and complete in all material respects and reported in a manner designed to present fairly the
financial position, results of operations, and cash flows in accordance with the Generally Accepted
Accounting Principles (GAAP).

GAAP requires that management provide a narrative overview and analysis to accompany the financial
statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal
should be read in conjunction with the MD&A, which can be found immediately following the report of
the independent auditors in the financial section of the CAFR.

Organization

The Authority is an independent authority of the City of Birmingham (“the City”) that was established in
June 1986. Birmingham‐Shuttlesworth International Airport (“the Airport”) is operated by the Authority
pursuant to a 50‐year lease (“the City Lease”), which became effective on September 16, 1986 and expires
on September 15, 2045. Under the terms of the City Lease, all real property acquired by the Authority is
conveyed to the City and becomes subject to the terms and conditions of the City Lease. The Authority is
governed by a seven‐member Board of Directors (“the Board”). The Board appoints a President and CEO
to serve as chief operating officer. Directors of the Board are nominated by the Mayor of the City and
appointed by the City Council. Directors are appointed to staggered six‐year terms. The Mayor is a non‐
voting ex‐officio director. The current members of the Board are Michael H. Bell (Chairperson), G. Ruffner
Page, Jr., Robert Earl Kelly, John McMahon III, Aaisha Muhammad, Christopher Johnson and Randall
Woodfin (Mayor Ex Officio Member).

The operations and improvements at the Airport are funded by airport user charges, Passenger Facility
Charges (PFCs), Customer Facility Charges (CFC’s), bond funds, and funds received from the Federal
Aviation Administration (FAA) and the Transportation Security Administration (TSA). No general tax fund