Airport Commission

Airport Commission Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport PLEASE NOTE: This meeting is will be held on zoom and in-person in the Wright Room at the Airport. Zoom Info: Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join. https://zoom.us/j/95941583622?pwd=jspMUXkiTTeF3LGU9JkR8vhdYXocQq.1 1. Call to Order Subject 1.1. Call to Order Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 1. Call to Order Department Type Subject 1.2. Acknowledgement of Remote Commissioners Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 1. Call to Order Department Type 2. Agenda 2.1. Motion to amend/adopt agenda 3. Public Forum Subject 3.1. PUBLIC FORUM - Verbal Comments Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 3. Public Forum Department Type Page 1 of 143 4. Consent Agenda Subject 4.1. Approval of Minutes Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 4. Consent Agenda Department Type Recommended Action 5. Action Items Subject 5.1. Airport Ambassador Reclassification Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 5. Action Items Department Burlington International Airport Type Recommended Action 6. Innovation and Marketing Quarterly Update Subject 6.1. Innovation and Marketing Quarterly Update, J. Bartley Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 6. Innovation and Marketing Quarterly Update Department Burlington International Airport Type Recommended Action 7. Construction Update Subject 7.1. Construction Update, L. Lackey Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 7. Construction Update Department Burlington International Airport Type 8. Residential Sound Insulation Program Update Subject 8.1. Residential Sound Insulation Program Update, L. Lackey Page 2 of 143  Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 8. Residential Sound Insulation Program Update Department Burlington International Airport Type 9. Financial Update Subject 9.1. Financial Update, M. Friedman Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 9. Financial Update Department Burlington International Airport Type Subject 9.2. Audit Report, M. Friedman Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 9. Financial Update Department Burlington International Airport Type 10. Director's Report Subject 10.1. Director's Report Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 10. Director's Report Department Type 11. Commissioner Items Subject 11.1. Commissioner Items Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 11. Commissioner Items Department Type 12. Follow-up Items 13. Adjournment Subject 13.1. Motion to adjourn Page 3 of 143  Meeting March 4, 2026 - Airport Commission Meeting - 3/4/26 - Wednesday, March 4, 2026, 4:00 PM, Zoom/Wright Room at the Airport Category 13. Adjournment Department Council and Board Type Recommended Action 14. Informational and Non-Discrimination Statements This meeting will air on Town Meeting TV's Burlington Meetings channel (Burlington Telecom channel 317) at a later date. For program airtimes, please visit cctv.org, or contact Town Meeting TV at 802-862-3966 or airtimes@cctv.org The City of Burlington will not tolerate unlawful harassment or discrimination on the basis of political or religious affiliation, race, color, national origin, place of birth, ancestry, age, sex, sexual orientation, gender identity, marital status, veteran status, disability, HIV positive status, crime victim status or genetic information. The City is also committed to providing proper access to services, facilities and employment opportunities. The programs and services of the City of Burlington are accessible to people with disabilities. Individuals who require special arrangements, auxiliary aid, service for effective communication, or a modification of policies or procedures to participate in a program, service, or activity of the City of Burlington, should contact the office of the Title II Burlington ADA Coordinator at 802-865-7000 as soon as possible but no later than 48 hours before the scheduled event. Page 4 of 143  PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT BOARD OF AIRPORT COMMISSIONERS MINUTES OF MEETING February 4, 2026 Location: The Wright Room 1200 Airport Drive, South Burlington, VT 05403 [Hybrid meeting] MEMBERS PRESENT: Tim George, Chair Jeff Schulman, Vice Chair Robin Guillian Helen Riehle Chip Mason Andrew Savage Al Turkos MEMBERS ABSENT: None BTV STAFF PRESENT: Nicolas Longo, Director of Aviation Larry Lackey, Director of Engineering & Environmental Compliance Jeff Bartley, Director of Innovation & Marketing Jesse Sprague, Executive Assistant Madison Reagan, Environmental Compliance and Project Manager Alexandra Cohen, Marketing Assistant Romeo von Hermann, Customer Experience Manager Dave Carman, Deputy Director – Airport Operations Marie Friedman, Director of Finance OTHERS PRESENT: CCTV Michael Sanchez (Heritage Aviation) 1.0 Call to Order 1.1 Call to Order Airport Commission Chair, Tim George, called the meeting to order at 4:01p.m. 1.2 Acknowledgement of Remote Commissioners Page 5 of 143  Individuals attending the meeting remotely identified themselves (Robin Guillian; later in the meeting Chip Mason and Jeff Schulman joined online) 2.0 Agenda Approve/Adopt Agenda MOTION by Robin Guillian, SECOND by Helen Riehle to approve the agenda as presented. VOTING: unanimous (5-0); motion carried. 3.0 Public Forum 3.1 Julie Macuga commented on Immigration Customs Enforcement operations 3.2 Lief Taranta commented on Immigration Customs Enforcement operations Chip Mason joined the meeting at 4:02p.m. 4.0 Consent agenda: 4.1 Approval of the minutes MOTION by Helen Riehle, SECOND by Chip Mason, to approve the minutes as presented in the agenda packet, including Minutes from the January 7, 2026 meeting. VOTING: unanimous (6-0); motion carried. 5.0 Construction Update 5.1 Construction Update, L. Lackey 5.1.1 In addition to the written construction update provided to the Airport Commission, Larry Lackey highlighted the following updates: o Robin Guillian asked Director Lackey about deicing locations; deicing locations are coordinated with underground infrastructure. The locations include: air carrier ramp, Heritage ramp, the valley west apron, and at the terminal gates. Jeff Schulman joined at 4:07p.m. 6.0 Noise Data 6.1 Noise Data, L. Lackey 6.1.1 In addition to the written construction update provided to the Airport Commission, Larry Lackey highlighted the following: o In January, almost all punch list items have been completed o Phase 5 of the Residential Noise Insulation Program will start in the spring, and the team is working to on design for the initial package for the homes and phase covered by the money received in the recent OLDCC funding award. 7.0 Financial Update, M. Friedman In addition to the written financial update provided to the Airport Commission, Director Longo highlighted the following: 7.1 The Airport has a healthy amount of cash on hand. 7.2 Federal funding has not changed. 7.3 Car rental revenues have stabilized since the changes from 2020. Page 6 of 143 8.0 Director’s Update In addition to the written presentation, Director Longo reported: 8.1 The Airport Commission meetings will move to the new administrative office space when the new terminal opens. 8.2 TSA Confirm ID will allow passengers to go through airport security if they do not have Real ID. 8.3 The maintenance team and snow crew did a fantastic job keeping the runways clear during the snow storm this past weekend. 8.4 When a snow event is consolidated to the Vermont region, the effect of a snow event is smaller, resulting in a quicker return to normal operations; this past storm was so widespread, so it took longer for airport operations and schedules across the country to return to status quo. 8.5 Leahy BTV is equipped with the appropriate staff and machinery to manage snow events 8.6 The Blue Lightning Initiatives began at Leahy BTV, including staff trainings, press releases, and news publications for human trafficking awareness at the airport. 8.7 Delta will be investing in additional service to Detroit. 8.8 In March, Jeff Bartley will be attending the ACI Legislative Conference 8.9 Based on reported schedules, Leahy BTV anticipates over 10,000 outbound departing commercial flights with over 930,000 scheduled seats. 8.10 The Airport is looking into AI as a way to operationalize AI to track performance indicators at the gate for commercial aviation at Leahy BTV. 8.11 The building that previously housed the Aviation Deli will be demolished and become a gravel and grass area. 9.0 Commissioner Items 9.1 Commissioner Items: 9.1.1 No Commissioner items. 10.0 Follow Up Items 10.1 Next time, the Commission will revisit how the airport leverages AI 11.0 Adjournment MOTION by Helen Riehle, SECOND by Al Turkos to adjourn the meeting. VOTING: unanimous (7-0); motion carried. Page 7 of 143 To: City of Burlington, Airport Commission City of Burlington, Board of Finance City of Burlington, City Council From: Nicolas Longo C.M. Director of Aviation Date: March 4, 2026 Subject: Reclassification of the Airport Ambassador Position Executive Summary: Patrick Leahy Burlington International Airport is seeking approval for the reclassification of Airport Ambassador from a Grade 9, non-exempt AFSCME position to Grade 11, non-exempt AFSCME position. Background: The Airport Ambassador position was created as part of City of Burlington in 2012. This role has grown from managing the front curb to assisting with ground transportation as a whole. As the needs of the airport have grown, this job description has been in need of an update. The Airport Ambassadors are the front lines of the airport. This team is the first staff contact to greet passengers as they arrive to board flights, and they are the last point of contact for passengers to welcome arrivals to Burlington. You may recognize them as the friendly faces out front wearing yellow vests, ready to assist and direct passengers as needed. This team is essential to our customer service and safety at the airport. The team is made up of 18 positions, including 14 full time and four part time roles. One part time role and one full time role are currently vacant. Historically, the responsibilities of this role have included: monitoring both the garage and the front curb, helping with lost and found, and many other things that take place behind the scenes. As our passenger numbers increase, the services we provide and the staff team must grow as well. We seek Page 8 of 143 to reclassify this position from Grade 9 to 11 making it fair and equal to other similar positions with the City. We are updating the job description to accommodate these needs and to best serve our community. Highlights of the Changes include: - Monitor and report parking violations - Maintain “Lost and Found” program - Participate in snow removal - Assist with airport events - Driving City vehicles - Knowing, understanding and following both FAA and TSA regulations Budget and Financial Impact: The fiscal year 2026 salary cost increase due to this reclassification will be covered within the already approved budget. Several position vacancies have resulted in lower overall payroll costs. Due to this savings, the additional salary increases can be absorbed into the current budget. Current Grade Current annual Salary New Grade New Annual Salary Grade 9 $21.1452/hour or $43,982 Grade 11 $23.0978/hour or $48,043 Step 1-15 annually - $25.0991/hour or Step 1- 15 annually - $27.4424/hour - $57,080 $52,206 annually annually Motions: The Airport respectfully requests the following proposed motions: Airport Commission: Approve the memo as presented. Board of Finance Motion “To approve and recommend that the City Council approve the proposed reclassification of the Airport Ambassador position from Grade 9 to Grade 11, with corresponding changes to the job description for the position.” City Council Motion: “To approve the proposed reclassification of the Airport Ambassador position from Grade 9 to Grade 11, with corresponding changes to the job description for the position.” Page 9 of 143 Page 1 of 4 City of Burlington Job Description Position Title: Airport Ambassador Department: Airport Reports to: Customer Experience Manager --- 11 Pay Grade: 9 Job Code: Exempt/Non-Exempt: Non-Exempt Union: AFSCME Remote Score: Tier 1 General Purpose: This position is responsible for providing information, assistance, and security measures at the terminal, ground transportation areas and parking garage, and as necessary processing transactions using fee computers for customers while referring more complex issues to foreperson and/or supervisors. In addition, this position assists in maintaining a clean, welcoming, secure and professional environment. The Airport Ambassador provides exceptional customer service and support to passengers, visitors, and airport stakeholders. This position serves as a welcoming and informative presence throughout the airport, supporting safe, efficient, and positive travel experiences for individuals of diverse backgrounds and abilities. Essential Job Functions: • Serve as a front line ambassador at the Patrick Leahy Burlington International Airport terminal buildings, roadways and parking office, by actively engaging with customers to provide assistance with luggage and wheelchairs, locating lost vehicles, answering questions, giving directions, parking information and maintaining safety and security requirements. • Provide accurate information regarding flight activity, terminal layout, airport services, and amenities Coordinate with airport staff, airlines, security, and emergency personnel and others as necessary including general understanding of airport security program and federal requirements. • Maintain a visible presence throughout terminals, curbside, and public areas. • Monitor the terminal and garage environment and report unusual events, activities, or hazardous conditions as required. • Assist with emergencies, including, but not limited to, fire alarms, medical calls, and aircraft emergencies. • Operate a fixed and/or mobile parking garage monitoring station to assist patrons with entry, exit, payment, and wayfinding. • Leverage all available technologies including but not limited to automated fee computers, self-service/self-pay kiosks, license plate recognition, intercoms, and video systems and process transactions, resolve issues, provide customer support, and coordinate escorts when needed. • Be knowledgeable of airport facilities, airport terminal and fire exits, evacuation routes, as, well as other airport buildings, traffic routes and submit work orders and documentation as required. Page 10 of 143 Page 2 of 4 • Patrol assigned areas, identify and report vehicle parking violations, including, but not limited to, parking in front of fire hydrants, restricted areas, ADA designated parking spots and abandoned vehicles. • Assist with monitoring vehicles in the parking garage, including directing vehicles to the off-premises parking lot when directed. • Monitor airline arrival and departure schedules. • Maintain the “Lost and Found” program by receiving, logging, storing, and assisting customers with retrieving items from airport lost and found and updating the lost and found database. • Communicate information regarding access and availability of ground transportation at the Airport by being knowledgeable in such information including the City of Burlington Vehicle for Hire Ordinance. • Inspect parking access revenue control system equipment and/or respond to reported problems with such equipment, including, but not limited to, refilling ticket paper, reattaching gate arms, and power cycling parking machines. • Assist Working Foreperson and/or airport managers with advanced repairs, including, but not limited to, parts replacement, contacting third party vendors and/or airport Information Technology (IT). • Assist the working Foreperson with maintaining an accurate report of vehicle capacity in the garage. • Communicate and cooperate on security and customer service matters as appropriate • Assist with snow removal and other events, including, but not limited to, shoveling and salting sidewalks and crosswalks to maintain safe areas. • Assists with on and off-airport events, including, but not limited to, event safety and security, crowd and traffic control, installation of temporary fencing and signage, and general set-up and breakdown. • Maintain a clean environment throughout the airport, including, but not limited to, sweeping debris, coordinating with janitorial for trash removal, and handling and disposal of biohazard materials using proper tools, Personal Protective Equipment (PPE) and make appropriate work orders. • Maintain and enhance positive public relations by responding promptly to complaints and inquiries by the traveling public. • Assist as assigned with miscellaneous tasks, including but not limited to escorting visitors throughout the airport and/or in the Security Identification Areas (SIDA). • Enforce airport rules and regulations and City Ordinances relating to ground transportation services, traffic flow, and parking of vehicles, including but not limited to directing traffic. • Follow procedures by properly staffing the concourse security exit lanes as directed in accordance with federally approved airport security procedures (ASP). • Observe, report, and follow procedures related to safety, security, and operational concerns • Collect luggage carts and wheelchairs on a regular basis throughout the day. • Understand and execute Ground Transportation duties such as; permit distribution, which includes collection and recording of payment, and paperwork filing. • Perform all duties in compliance with airport policies, customer service standards, and applicable regulations. • Perform other duties as required Page 11 of 143 Page 3 of 4 Qualifications/Basic Job Requirements: • High school diploma or equivalent and a minimum of two years’ experience working in a public service capacity or an equivalent combination of education and experience is required. Experience in airport or security preferred. • Must possess a valid driver's license and pass MVR check. • Must complete in-house training and acquire the skills to operate airport vehicle safely and professionally as required. • Generally understand and be knowledgeable of airport security regulations. • Must be able to stand for several hours at a time. • Ability to work extended periods of time in all weather conditions. • Ability to follow written and verbal instructions. • Ability to communicate clearly and professionally both orally and in writing. • Ability to process monetary transactions and apply basic math skills • Ability to work weekends, nights and holidays as required with potential changes of shifts. • Ability to interact with the general public, staff members, supervisors, outside contractors and various professional and private customers in a courteous and professional manner at all times. • Ability to interact effectively with individuals from diverse cultural, social, and economic backgrounds • Ability to maintain a professional demeanor in the face of confrontation and stressful situations. • Ability to maintain professional appearance with a friendly, approachable demeanor • Ability to actively support City diversity, equity, and cultural competency efforts within stated job responsibilities and work effectively across diverse cultures and constituencies. • Demonstrated commitment to diversity, equity and inclusion as evidenced by ongoing trainings and professional development. • Punctuality and the ability to be on-site as scheduled. • Regular attendance is necessary and is essential to meeting the expectations of the job functions. • Ability to understand and comply with City standards, safety rules and personnel policies. • Ability to obtain and retain Patrick Leahy Burlington International Airport Secured Area ID badge (SIDA) which includes a 10 year fingerprint based criminal history records check, a security threat assessment check and a written exam. • Ability to work in modern office environment and use computer hardware and software, tablets, and phones. • Ability to properly use equipment including department phone and two-way handheld radios capable of tuning into Airport frequencies. Page 12 of 143 Page 4 of 4 Physical & Mental/Reasoning Requirements; Work Environment: These are the physical and mental/reasoning requirements of the position as it is typically performed. Inability to meet one or more of these physical or mental/reasoning requirements will not automatically disqualify a candidate or employee from the position. _X_ seeing _X_ ability to move distances ___ lifting (specify) _X_ color perception within and between _75_ pounds (red, green, amber) warehouses/offices ___ carrying (specify) _X_ hearing/listening _X_ climbing _75_ pounds _X_ clear speech _X_ ability to mount and _ X_ driving (local/over _X_ touching dismount forklift/truck the road) _X_ dexterity X_ pushing/pulling _X_ hand _X_ finger _X_ reading - basic _X_ math skills - basic __ analysis/comprehension _ _ reading – complex __ math skills - complex _X_ judgment/decision _X_ writing - basic _X_ clerical making _ _ writing - complex _X_ shift work _X_ outside __ pressurized equipment _X_ works alone _X_ extreme heat _X_ moving objects _X_ works with others _X_ extreme cold __ high places _X_ verbal contact w/others _X_ noise _X_ fumes/odors _X_ face-to-face contact _X_ mechanical equipment _X_ hazardous materials _ _ inside _ _ electrical equipment _X_ dirt/dust Supervision: Directly Supervises: ____ Indirectly Supervises: _____ Disclaimer: The above statements are intended to describe the general nature and level of work being performed by employees to this classification. They are not intended to be construed as an exhaustive list of all responsibilities, duties and/or skills required of all personnel so classified. Approvals: Department Head: _____________________________ Date: __________ Human Resources: _____________________________ Date: __________ Grade updated 07/01/2022 ; review feb 2026 Page 13 of 143 2026 Innovation & Marketing Update Jeff Bartley | Director of Innovation & Marketing 1 Page 14 of 143 2026 Division Highlights  Lots of events! 5K, Hot Chocolate Bar, Rec Path Press Conference, Holiday Party, Employee Appreciation Event  Economic Impact Study  Social media growth! 1.6% on Facebook and 3.3% on Instagram in last 30 days.  More food! Kestrel Coffee and The Better Box Page 15 of 143 2026 Ongoing Projects  Airline Agreement  Accessibility Enhancement Accreditation  Emergency Communications Plan  Legislative Efforts  Website Redesign  Project NexT Opening  Online Store  Service Animal Policy  Sound System Upgrade  Common Use Gate System  Community Events: 5K, State of the Airport, Farmers Market  Oh and Marketing! Page 16 of 143 2026 Marketing Efforts Page 17 of 143 2026 Page 18 of 143 2026 Page 19 of 143 2026 Page 20 of 143 2026 Page 21 of 143 2026 Airline Development Page 22 of 143 2026 Denver Case: DEN Page 23 of 143 2026 Page 24 of 143 2026 DEN (Denver) 2024 Market ● Served Non-Stop By: United ○ Captures: 43% PAX ■ BTV - DEN Passengers: 11,513 ■ DEN - BTV Passengers: 11,087 *Data: DiioMi Page 25 of 143 2026 2026 Economic Impact Study Page 26 of 143 2026 What We Studied • Direct Spending: On-airport business activity (air carriers, FBOs, concessions, tenants), capital projects, military operations, and air-visitor outlays. • Induced Benefits: Household spending that occurs when workers supported by airport-related activity spend their earnings in the region. • Jobs and Income: Employment and labor compensation across direct, indirect, and induced effects. • Total Output: Dollar value of goods and services produced in the regional economy due to BTV. • Taxes: Estimated state and local fiscal revenues linked to airport-enabled activity and visitor spending • Airport Regional Value (ARV): Estimated replacement value, depreciated value, and indicative ROA for airport assets, including joint-use facilities Page 27 of 143 2026 Study Framework • Data Collection: Airport operations, tenant surveys, capital program, defense and technology sector inputs. • Regional Multipliers: IMPLAN modeling and assumptions. • State and Local Tax Impacts: Fiscal effects derived from modeled outputs. • Airport Regional Value: Asset inventory and valuation. • Summary and Findings: Synthesizing results to guide planning, funding, and community decision- making Page 28 of 143 2026 Direct and Induced Economic Impacts: Item Amount Direct Impacts Airport-related Income* $199,646,811 On-Airport Expenditures (Total including $687,514,245 capital costs) Estimated State/Local Taxes** $62,535,339 Airport-related Employment (Total) 3,807 jobs Induced Impacts Induced Dollar Impacts $382,254,260 Total Induced Employment Impacts 1,869 Grand Total Dollar Impacts $1,069,768,505 Grand Total Income Impacts* $325,427,245 Grand Total Employment Impacts 5,646 jobs Page 29 of 143 2026 Summary of Airport Regional Value 2018 2025 % Change Total Jobs 4,935 5,646 +14.4% Total Payroll $170,427,100 $325,427,200 +90.9% (Labor Income) Total Economic Output $481,464,900 $1,069,768,500 +122.2% Total State & Local Taxes $34,527,500 $62,535,300 +81.1% Existing Value $562,000,000 $809,000,000 +44% (Replacement Value) Page 30 of 143 2026 Summary of Airport Regional Value 2018 2025 % Change Total Economic Output $0.482 billion $1.070 billion Existing Value $0.562 billion $0.809 billion (Replacement Value) Combined Airport Regional $1.043 billion $1.88 billion +80% Value Page 31 of 143 2026 Economic Impact Valuation • The overall value of the Airport to the region is $1.88 billion • The annual economic activity generated by the airport is $1.07 billion • The current asset value of the airport is $809 million Jobs • The airport supports 5,646 jobs • The airport provides Vermonters with $325.4 million in salaries annually Taxes • The airport generates approximately $53.5 million in state taxes and $9 million in local taxes annually Page 32 of 143 2026 THANK YOU! Page 33 of 143 Patrick Leahy Burlington International Airport Economic Impact Assessment 2025 Technical Report Page 34 of 143  Table of Contents SECTION 1: INTRODUCTION.................................................................................................... 1 1.1. Introduction .............................................................................................................................................. 1 1.2. Study Framework .................................................................................................................................... 2 SECTION 2: DATA COLLECTION .............................................................................................. 4 2.1. Airport Setting .......................................................................................................................................... 4 2.2. On-Airport Employment ......................................................................................................................... 5 2.3. Visitor Spending ....................................................................................................................................... 7 2.4. Capital Spending ...................................................................................................................................... 8 2.5. Summary ................................................................................................................................................... 9 SECTION 3: REGIONAL MULTIPLIERS .................................................................................... 11 3.1. IMPLAN Modeling Methodology ....................................................................................................... 11 3.2. Application to Burlington International Airport............................................................................... 12 3.3. State and Local Tax Impacts ............................................................................................................. 12 3.4. Airport Qualitative Benefits ................................................................................................................. 13 SECTION 4: EXISTING VALUE OF AIRPORT PROPERTY AND FACILITIES ................................ 16 4.1. Airport Replacement Value................................................................................................................. 16 4.2. Current Value of Airport Facilities ..................................................................................................... 17 4.3. Return on Assets .................................................................................................................................. 19 SECTION 5: SUMMARY OF AIRPORT REGIONAL VALUE ........................................................ 22 APPENDIX A: DETAILED IMPLAN RESULTS ........................................................................... 23 List of Tables Table 1: Direct Airport Employment ................................................................................................................. 9 Table 2: Direct and Induced Economic Impacts: Burlington International Airport ............................. 12 Table 3: Estimated Replacement Value of Airport Property and Facilities........................................... 17 Table 4: Estimated Existing Value of Airport Property and Facilities .................................................... 19 Table 5: IMPLAN Detailed Employment ....................................................................................................... 23 Table 6: IMPLAN Detailed Output.................................................................................................................. 24 Page 35 of 143 Table 7: IMPLAN Detailed Taxes ................................................................................................................... 25 Table 8: IMPLAN State Tax Impacts ............................................................................................................. 26 Table 9: IMPLAN County Tax Impacts ......................................................................................................... 26 Table 10: IMPLAN Sub County (Special Districts) Tax Impacts ............................................................. 27 Table 11: IMPLAN Sub County (General) Tax Impacts ............................................................................. 27 Page 36 of 143 SECTION 1 Introduction Page 37 of 143  2025 Economic Impact Assessment Burlington International Airport Section 1: Introduction 1.1. Introduction This study updates a previous analysis of Patrick Leahy Burlington International Airport’s (BTV) Economic Impact and Airport Regional Value that was conducted in 2018. As Vermont’s primary commercial airport and a joint-use facility with the Vermont Air National Guard, BTV anchors business travel, tourism, emergency access, and military readiness for northwest Vermont and adjacent markets. Quantifying both the annual flow of airport-generated income and the value of Airport assets helps support funding, land use, and transportation decisions by federal, state, and local partners. Airports create economic value through the yearly flow of jobs, income, and spending they enable, and also through the long-lived public assets they represent. For that reason, this update presents results through two complementary metrics: • Economic Activity: the annual economic activity attributable to BTV using current IMPLAN input–output modeling and regional multipliers. • Airport Regional Value: the worth of BTV as public infrastructure by compiling replacement value and depreciated value for runways, taxiways, terminal, support, and joint-use assets, and by relating that capital base to operations through return-on-assets (ROA) measures. The Economic Activity lens shows what BTV generates each year. The Airport Regional Value lens shows what underpins that performance—the magnitude and stewardship of the public capital making it possible. Together, they provide a fuller basis for air-service strategy, grant applications, resilience and sustainability investments, technology adoption, and joint civil-military operations. This analysis estimates and presents the following economic aspects of BTV: • Direct Spending: On-airport business activity (air carriers, FBOs, concessions, tenants), capital projects, military operations, and air-visitor outlays. • Induced Benefits: Household spending that occurs when workers supported by airport-related activity spend their earnings in the region. • Jobs and Income: Employment and labor compensation across direct, indirect, and induced effects. • Total Output: Dollar value of goods and services produced in the regional economy due to BTV. • Taxes: Estimated state and local fiscal revenues linked to airport-enabled activity and visitor spending. 1 R.A. Wiedemann & Associates, Inc. Page 38 of 143 2025 Economic Impact Assessment Burlington International Airport • Airport Regional Value (ARV): Estimated replacement value, depreciated value, and indicative ROA for airport assets, including joint-use facilities. 1.2. Study Framework The report includes the following framework: • Data Collection: Airport operations, tenant surveys, capital program, defense and technology- sector inputs. • Regional Multipliers: IMPLAN modeling and assumptions. • State and Local Tax Impacts: Fiscal effects derived from modeled outputs. • Airport Regional Value: Asset inventory and valuation. • Summary and Findings: Synthesizing results to guide planning, funding, and community decision-making. R.A. Wiedemann & Associates, Inc. 2 Page 39 of 143  2025 Economic Impact Assessment Burlington International Airport SECTION 2 Data Collection 3 R.A. Wiedemann & Associates, Inc. Page 40 of 143 2025 Economic Impact Assessment Burlington International Airport Section 2: Data Collection The data collection effort provides the quantitative foundation for all modeling of employment, labor income, and output. In keeping with the 2018 study’s approach, data were assembled from primary sources at the Airport and its tenants, state and federal datasets, and corroborating public records. This effort was organized into four sequential steps: • Airport Setting • On-Airport Employment • Visitor Spending • Capital Spending 2.1. Airport Setting Facilities and Infrastructure BTV occupies approximately 942 acres in South Burlington and is owned by the City of Burlington. The airfield comprises two paved runways—Runway 15/33 (8,319’ × 150’) and Runway 1/19 (4,112’ × 75’)—with precision approach capability on 15/33 and published instrument procedures on all runway ends. Air traffic control services, Airport Rescue and Firefighting (ARFF) Index B, and 24- hour operations are maintained. A full-service fixed-base operator (FBO) provides major airframe and powerplant maintenance, 100LL, Jet-A fueling, and Sustainable Aviation Fuel (SAF), as well as general aviation (GA) parking and hangar facilities. Emerging Aerospace Manufacturing Adjacent to the airfield, BETA Technologies operates a 178,000-square-foot final-assembly and production facility at the Patrick Leahy Burlington International Airport campus. Commissioned in October 2023, the plant provides airside access for systems integration, ground testing, and direct taxi to the runway for flight test, positioning BTV as the hub of BETA’s transition from prototyping to series production of its all-electric ALIA aircraft. Since opening, BETA has progressed from tooling installation to production-line operations and completed the first flight of an aircraft built on the South Burlington line in late 2024—an ALIA conventional-takeoff variant that advanced the company’s flight-test and certification program. This trajectory underscores the strategic value of co-locating manufacturing with runway access and strengthens BTV’s role in Vermont’s emerging aerospace and clean-technology cluster. 1 1 BETA Completes First Flight of an Aircraft Built on Its Vermont Production Line.” Vermont Business Magazine, 14 Nov. 2024, https://vermontbiz.com/news/2024/november/14/beta-completes-first-flight-aircraft-built-its-vermont-production-line R.A. Wiedemann & Associates, Inc. 4 Page 41 of 143  2025 Economic Impact Assessment Burlington International Airport Air Service BTV is Vermont’s principal commercial airline gateway. Scheduled carriers include American, Breeze, Delta, Sun Country, and United, providing nonstop service to core network hubs — CLT, DTW, JFK, LGA, ORD, PHL—and seasonal/leisure destinations such as CHS, DEN, MCO, and TPA. This portfolio supports both business connectivity and visitor access to the Burlington metropolitan area and the broader Vermont market. Cargo and Military Operations The Airport supports continuing air cargo activity and has advanced cargo apron planning to meet projected demand. BTV is also home to the 158th Fighter Wing (Vermont Air National Guard), which converted from the F-16 to the F-35A in 2019, and to the Army Aviation Support Facility. Although these operations comprise a minor share of total annual movements, they are an important part of the Airport’s overall operating environment. 2 Regional Economic Context The Burlington metropolitan economy is anchored by higher education and healthcare, complemented by advanced manufacturing, professional services, and a visitor sector. Vermont recorded 15.8 million visitors and $4.0 billion in visitor spending in 2023, with outlays distributed across lodging, food and beverage, transportation, retail, and recreation. 3 Tourism remains a significant driver of regional employment and tax receipts and is closely tied to the air service provided at BTV. 2.2. On-Airport Employment Airport Operations On-Airport operational employment was estimated primarily from the BTV badge access roster. A badge indicates an individual who requires routine, secure access to airside or terminal areas and, for this analysis, serves as a proxy for on-Airport headcount. This subsection quantifies ongoing operational employment only. Temporary construction labor and other capital-project activity are excluded here and addressed separately in the Capital Spending analysis. Employment that counted as direct, Airport-dependent included: • Air carriers and air cargo station staff. • Contracted ground handling and aircraft cleaning. • Fixed-base operations (FBO), fueling/deicing, and line service. 2 BTV, Public Notice 3 Tourism Economics for the Vermont Department of Tourism & Marketing. Economic Impact of Visitors in Vermont 2023. Dec. 2024. https://outside.vermont.gov/agency/ACCD/ACCD_Web_Docs/TM/Vermont-Tourism%20Economic-Impact-Final.pdf 5 R.A. Wiedemann & Associates, Inc. Page 42 of 143 2025 Economic Impact Assessment Burlington International Airport • On-airfield maintenance and repair (MRO) activity. • Airport operator departments, administration, operations, maintenance, ARFF. • Federal personnel stationed on the field, air traffic services and passenger screening. • Terminal concessions, food & beverage, retail. • On-airport IT/equipment support with dedicated posts at BTV. Badges associated with temporary construction or activities not dependent upon Airport operations were excluded from the operational employment estimate, including project-phase roles like prime contractors, subcontractors, engineers, special inspectors, and airfield electrical/lighting, paving/marking crews working under capital projects. The economic impact associated with these positions is captured in the Capital Spending section. In addition, volunteers, flying clubs, and private hangar owners are not treated as paid employment and were excluded. Where badge issuance practices, shared badges, inactive badges, or other administrative factors distorted true staffing levels, employment estimates provided by Airport Administration were used to adjust/override the badge-based counts to better reflect observed operational reality. This approach was applied to BETA Technologies as a major on-Airport employer and for federal functions such as the Transportation Security Administration (TSA) and Customs and Border Protection (CBP), where staffing levels were confirmed by Airport Administration and/or carried forward from the prior study when current badge lists were incomplete. The result of this inventory indicates total Airport Operational Employment at 1,280. Military Employment BTV hosts the Vermont Air National Guard’s 158th Fighter Wing (F-35A) and the Vermont Army National Guard’s Army Aviation Support Facility. Military activity is geographically separate from the commercial terminal and operates under federal/state command, but shares the airfield (runways, taxiways) and air traffic services. For economic modeling, Guard employment at BTV is treated as on-airport federal/state activity distinct from civilian airport and airline operations. In 2023, The Vermont National Guard reported 894 full-time and 2,611 part-time members statewide. 4 The statewide totals were translated to on-airport full-time equivalent (FTE) positions through a three-step procedure: 4 Vermont Military Department. Military Department Testimony: Fiscal Year 2025. Committees on Appropriations, Vermont General Assembly, Feb. 2024, https://ljfo.vermont.gov/assets/Uploads/ce38b6cb07/WGregory-KnightMilitary-Dept-FY25-Budget- Presentation2-14-2024.pdf R.A. Wiedemann & Associates, Inc. 6 Page 43 of 143  2025 Economic Impact Assessment Burlington International Airport 1. Air-to-Army proportions from a 2018 Vermont Air and Army National Guard Economic Impact Study where 44 percent of full-time positions and 23 percent of part-time positions were assigned to the Air National Guard. 5 2. Part-time personnel were converted to FTE at a ratio of ten part-time members to one FTE and combined with full-time counts. 3. The Army presence at BTV was inferred relative to the Air National Guard footprint, using facility parking capacity. This yields an Army National Guard level equal to approximately twenty percent of Air National Guard FTEs. Applying this method produces on-airport military employment estimates of 456 FTE for the Air National Guard and 91 FTE for the Army National Guard. The result of this inventory indicates total Airport Military Employment at 547. 2.3. Visitor Spending Visitor spending represents off-airport expenditures by non-residents whose trips are enabled by BTV. The analysis consolidates scheduled commercial airline passengers and itinerant general aviation (GA) travelers and applies visitor shares consistent with BTV’s passenger mix and prior Vermont studies. Resulting outlays are allocated to spending categories for subsequent IMPLAN modeling. Consistent with prior BTV analyses, 50 percent of scheduled airline passengers are treated as visitors, and 45 percent of itinerant GA arrivals are visitor parties. Airline passenger volumes are based on 2024 enplanements and GA operations are drawn from the 2025 master plan forecast. • Airline Enplanements: BTV recorded 670,636 enplanements in 2024 6. Annual enplanements were used as a proxy for annual arriving passengers, assuming arrivals approximately equal departures over the year. Applying the 50 percent visitor share yields 335,318 airline visitors. This approach applies the visitor share once and does not double enplanements, consistent with the assumption that annual arrivals approximate departures. • Itinerant General Aviation. The BTV Master Plan indicates 33,021 itinerant GA operations in 2025 (arrivals + departures), implying 16,511 arrivals 7. Applying a 45 percent visitor share and an average party size of 2.5 persons per arriving aircraft produces 18,574 GA visitors. 5 Woolf, Arthur. The Economic Impact of the Vermont Air and Army National Guard Bases. Arthur Woolf Economic Consulting, 26 Feb. 2018. Prepared for the Greater Burlington Industrial Corporation. 6 Federal Aviation Administration. “Enplanements at All Airports (Primary, Non-primary Commercial Service, and General Aviation) by State and Airport.” Passenger Boarding (Enplanement) and All-Cargo Data for U.S. Airports, 15 Sept. 2025, https://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/ARP-cy2024-all-enplanements.pdf 7 Burlington International Airport. “Appendix D: Forecasting Data.” Patrick Leahy Burlington International Airport (BTV) Master Plan, 2021, https://btvmasterplan.com/wp-content/uploads/2022/01/Appendix-D-Forecasting-Data.pdf 7 R.A. Wiedemann & Associates, Inc. Page 44 of 143 2025 Economic Impact Assessment Burlington International Airport Combined, these assumptions yield 353,892 total visitors. The Vermont Department of Tourism and Marketing’s 2023 benchmark places average overnight visitor spending at $431 per trip. 8 That figure was adjusted to September 2025 dollars using the national CPI-U, yielding $456 per trip. 9 For modeling, spending is allocated across the following industry categories: • Lodging: 35.6% • Food & Beverage: 20.5% • Transportation: 16.5% • Retail: 16.3% • Recreation: 11.0% With 353,892 visitors at $456 per trip, total annual visitor spending is $161.4 million. Category allocations above are used to map expenditures to the appropriate IMPLAN sectors for estimation of direct employment and downstream effects. The result of this inventory indicates total Visitor Spending Employment at 1,746. 2.4. Capital Spending Capital spending represents non-recurring project outlays for Burlington International Airport’s (BTV) airfield, terminal, safety, and enabling infrastructure. These expenditures support construction employment and supplier purchases during project periods only; they are not part of ongoing operations and are treated separately in the economic model to avoid double-counting. FAA grant history indicates $263,150,802 in federal Airport Improvement Program (AIP) and related capital awards to BTV since 2014 10. Applying a standard 90/10 federal–local cost share to infer full project costs yields an estimated total capital program of $292.4 million. This equates to an average annual expenditure of approximately $26.6 million. Annualized capital outlays are entered into IMPLAN under appropriate construction sectors to estimate direct construction employment and associated downstream effects attributable to BTV’s capital program. This approach reflects BTV’s ongoing capital reinvestment cycle while maintaining a clear separation from recurring airport operations. 8 Tourism Economics for the Vermont Department of Tourism & Marketing. Economic Impact of Visitors in Vermont 2023. Dec. 2024. https://outside.vermont.gov/agency/ACCD/ACCD_Web_Docs/TM/Vermont-Tourism%20Economic-Impact-Final.pdf 9 U.S. Bureau of Labor Statistics. “CPI Inflation Calculator.” U.S. Bureau of Labor Statistics, https://www.bls.gov/data/inflation_calculator.htm 10 Federal Aviation Administration. “Airport Improvement Program (AIP) Grant Histories.” Federal Aviation Administration, 12 Feb. 2025, https://www.faa.gov/airports/aip/grant_histories R.A. Wiedemann & Associates, Inc. 8 Page 45 of 143  2025 Economic Impact Assessment Burlington International Airport The result of this inventory indicates total Capital Spending Employment at 234. 2.5. Summary The data collection effort established the numeric foundation for the economic impact modeling. On-Airport badge records were reconciled to FTE employment estimates with input from Airport Administration, including adjustments where badge totals did not reflect actual staffing. National Guard employment was allocated to BTV using documented Air/Army proportions and a conservative 10:1 part-time-to-FTE conversion. Visitor volumes were derived from airline enplanements and itinerant GA arrivals using established visitor shares, paired with per-trip spending mapped to IMPLAN sectors. Capital activity was treated separately as non-recurring, annualized from federal grants using standard cost-share assumptions to avoid double counting with ongoing operations. In total, the study estimates 3,807 direct jobs associated with BTV. Detailed results are shown in Table 1. Table 1: Direct Airport Employment Employment Area Direct Jobs Airport Employment 1,280 Airport Capital Spending 234 Army and Air National Guard 547 Visitor Spending 1,746 Total Direct Jobs 3,807 9 R.A. Wiedemann & Associates, Inc. Page 46 of 143 2025 Economic Impact Assessment Burlington International Airport SECTION 3 Regional Multipliers R.A. Wiedemann & Associates, Inc. 10 Page 47 of 143  2025 Economic Impact Assessment Burlington International Airport Section 3: Regional Multipliers Economic impact analysis quantifies the economic contribution of a defined activity within a specified study area. Results are typically expressed using three core measures—jobs, income, and total output in dollars. For BTV, the analysis documents how spending tied to Airport operations, aviation visitor activity, military missions, and capital investment supports jobs and earnings throughout the region. The reason total impacts exceed the initial (direct) spending is the presence of regional multipliers. When an employer or project introduces new payroll and purchasing into a region, those dollars do not stop with the first transaction. Suppliers must acquire additional inputs and services to meet demand, and the employees who receive wages and salaries spend a portion of their income locally. These secondary rounds of activity generally occur through two channels: (1) business-to-business purchases within the supply chain, and (2) household spending generated by employee compensation. The magnitude of these ripple effects varies by the size and diversity of the regional economy. Within the Burlington MSA, a single direct job may support roughly one-third to two-thirds of an additional job, depending on the degree of local sourcing and the extent of spending “leakage” to other areas. Importantly, multipliers operate symmetrically. That is, they amplify gains when activity expands, and they also magnify losses when activity contracts. 3.1. IMPLAN Modeling Methodology IMPLAN is a widely used regional economic modeling platform that applies an input–output structure supplemented by a social accounting matrix (SAM) to trace how an initial change in economic activity flows through a local economy. In this update, IMPLAN is used to estimate how BTV-related spending and payroll extend beyond the Airport campus through business-to-business supply chains and household consumption. Annual IMPLAN datasets produce internally balanced SAMs for defined geographies, allowing multipliers to be tailored to the specific study area rather than relying on national averages. For this analysis, the modeled region is the Burlington–South Burlington, VT Metropolitan Statistical Area (MSA), using IMPLAN’s 2022 data set (the most recent). Direct inputs of employment, labor income, and output associated with on-airport activity, visitor spending, military-related activity, and capital investment were entered into IMPLAN using the appropriate event types and spending patterns. IMPLAN’s SAM framework was then applied to estimate the associated indirect and induced effects generated as suppliers respond to Airport-related demand and households re- spend earned income within the MSA economy. 11 R.A. Wiedemann & Associates, Inc. Page 48 of 143 2025 Economic Impact Assessment Burlington International Airport All results are reported in 2025 dollars. Monetary values produced in the IMPLAN 2022 framework were converted to 2025 equivalents using CPI-U inflation indices published by the U.S. Bureau of Labor Statistics (BLS). 3.2. Application to Burlington International Airport The final step in the analytical process is the estimation of the induced (multiplied) effects of Burlington International Airport’s direct aviation impacts. Table 2 presents a summary of Patrick Leahy Burlington International Airport direct and induced economic impacts in 2025 dollars. Detailed IMPLAN results by sector and impact type are provided in Appendix A. Table 2: Direct and Induced Economic Impacts: Burlington International Airport Item Amount Direct Impacts Airport-related Income* $199,646,811 On-Airport Expenditures (Total including capital costs) $687,514,245 Estimated State/Local Taxes** $62,535,339 Airport-related Employment (Total) 3,807 Jobs Induced Impacts Induced Dollar Impacts $382,254,260 Total Induced Employment Impacts 1,869 Jobs Grand Total Dollar Impacts $1,069,768,505 Grand Total Income Impacts* $325,427,245 Grand Total Employment Impacts 5,646 Jobs * Labor income includes employee compensation and proprietor income associated with the modeled activity (including off-airport components such as visitor spending and capital development where applicable). Labor income is a component of total output and should not be added to output. ** Taxes are estimated using IMPLAN’s tax impact reporting and should not be added to output. As shown, BTV’s regional economic impact in 2025 is estimated at 5,646 jobs, $325.4 million in labor income, and $1.07 billion in total economic output. 3.3. State and Local Tax Impacts In addition to jobs, income, and business output, Airport activity generates benefits through tax revenues paid by businesses and households supported by aviation-related spending. While the Airport as a municipal facility does not generally pay taxes in the manner of private enterprises, R.A. Wiedemann & Associates, Inc. 12 Page 49 of 143  2025 Economic Impact Assessment Burlington International Airport tenants, suppliers, employees, and visitors generate tax revenues through normal economic transactions and payroll activity. These impacts reflect a mix of sales and use taxes, meals and rooms taxes (where applicable), payroll-related taxes and fees, and other state and local revenue streams. Estimated state and local tax impacts supported by BTV-related aviation activity totaled $62,535,300 in 2025 dollars. These fiscal benefits accrue broadly to Vermont residents and local communities and are not limited to those who directly use the Airport. State Tax Impacts Of the estimated $62,535,300 in combined state and local tax impacts supported by BTV-related aviation activity in 2025, approximately $53,510,464 is generated at the state level. State fiscal benefits are driven primarily by statewide sales-related taxes, personal income tax collections, corporate profits tax, and other taxes on production and imports. Detailed state tax categories are presented in Appendix A (Table 8). Local Tax Impacts The remaining $9,024,874 is generated at the local level, including county, special-district, and municipal sub-county governments. Local tax impacts are primarily made up of property-tax- related revenues, along with smaller amounts of local sales and other local revenue streams. These local tax details are presented in Appendix A (Tables 9–11). 3.4. Airport Qualitative Benefits There are a number of non-monetary benefits of aviation that are not captured in the economic modeling process. Some of these benefits include: • Transportation and Connectivity: BTV provides direct access to the national air transportation system, improving regional connectivity for residents, businesses, and institutions. • Business Attraction and Retention: Reliable air service supports business travel efficiency and can influence firm location decisions, professional service activity, and regional competitiveness. • Tourism and Visitor Experience: BTV supports leisure and business tourism, including visitor access to Vermont’s recreation economy and regional destinations. • Aeromedical Evacuation and Emergency Response: BTV supports medical transport operations and provides critical time-sensitive capability for emergency response. • Military Readiness and Homeland Support: The Airport’s military presence supports readiness missions and provides surge capacity and operational support capabilities when needed. 13 R.A. Wiedemann & Associates, Inc. Page 50 of 143 2025 Economic Impact Assessment Burlington International Airport • Firefighting and Public Safety: Airport Rescue and Fire Fighting (ARFF) capability provides specialized equipment and trained personnel that can supplement regional emergency response. • Emerging Aviation Technologies and Innovation: The Airport’s role in supporting technology development—including electric aviation, charging infrastructure, and related testing/deployment activity—represents an evolving benefit category with longer-term implications for supply chain development and skilled employment. • Sustainability and Resilience: Electrification, energy management, and operational efficiency initiatives at the Airport can reduce emissions per trip, support resilience planning, and position the region for future regulatory and market shifts. • Workforce Development: Airport-related activity supports aviation maintenance, operations, public safety, and emerging technology workforce pathways through tenant hiring, contractor activity, and regional training partnerships. All of the above factors point to a value of an airport that is not easily quantified. The modeled impacts estimated in this report are only one facet of the overall picture. The economic activity generated by BTV represents the monetary value of the facility’s annual contribution, while these other non-monetary factors describe additional features of its intrinsic worth. R.A. Wiedemann & Associates, Inc. 14 Page 51 of 143  2025 Economic Impact Assessment Burlington International Airport SECTION 4 Existing Value of Airport Property and Facilities 15 R.A. Wiedemann & Associates, Inc. Page 52 of 143 2025 Economic Impact Assessment Burlington International Airport Section 4: Existing Value of Airport Property and Facilities Airports are unusual public assets. They are both transportation utilities and long-lived pieces of regional infrastructure. As a result, the “value” of an airport can be expressed in two complementary ways. The first is replacement value which represents the approximate cost to rebuild the airport’s land improvements, facilities, and supporting infrastructure at today’s market rates. The second is current (depreciated) value, which, for this study, is an estimate of the remaining useful-life value of those same assets after accounting for age and life-cycle condition. Several limitations should be noted. First, the estimates within this section are not intended to be appraisal-grade. Additionally, replacement value does not reflect environmental constraints, permitting, land-availability limitations, or the practical challenge of reconstructing an operating airfield in place. Likewise, depreciated value is necessarily simplified: it relies on generalized useful- life schedules and does not substitute for pavement-management systems, facility-condition indices, or audited book-value accounting. Land is treated as retaining full value, recognizing that it is not “consumed” in the same way as pavements and buildings. 4.1. Airport Replacement Value Replacement value was developed by applying current unit costs to an inventory of Airport assets. Major categories include airfield pavements and aprons, terminal facilities, hangars, non-hangar buildings, landside improvements, and land. For each category, quantities were multiplied by a representative unit cost to approximate the cost of replacement at today’s market rates. Land value was updated separately using $234,400 per acre, based on recent commercial/industrial land sales data in South Burlington 11. Recent capital development at Burlington International Airport that materially affected the asset inventory and replacement value estimate includes the following: • Development associated with the Beta Technologies campus on the south side of the Airport, including: - 178,000 square foot final-assembly and manufacturing facility with airside access. - 210,000 square feet of new apron pavement supporting aircraft staging, testing, and taxi operations. - Addition of approximately 51,100 square feet of new auto parking. 11 City of South Burlington, Vermont. “Information & Data.” City of South Burlington, VT, https://www.southburlingtonvt.gov/386/Information-Data. Accessed 21 Dec. 2025. R.A. Wiedemann & Associates, Inc. 16 Page 53 of 143  2025 Economic Impact Assessment Burlington International Airport - Construction of approximately 3,700 linear feet of new internal roadways. • Renovation of an existing 41,000 square foot hangar building for supporting functions. • Expansion of the airline terminal by approximately 36,000 square feet. • Addition of approximately one acre of new solar panels to the Airport’s solar farm. • Completion of multiple runway, taxiway, and apron pavement rehabilitation projects. The Beta manufacturing facility is included within the Airport’s Non-Hangar Building inventory shown in Table 3. Based on this inventory approach, the estimated total Airport replacement value is approximately $1.41 billion, as summarized in Table 3. Table 3: Estimated Replacement Value of Airport Property and Facilities Item Description Units Cost/Number Amount Land Value Acres from 5010 942 Cost/Acre $234,400 $220,804,800 Pavement Runway Length x Width 308,400 Cost/sq.ft. $100 $30,840,000 Runway Length x Width 1,247,850 $100 $124,785,000 Taxiway Length x Width 3,007,640 $100 $300,764,000 Airline & Military Apron Estimated 1,363,300 $100 $136,330,000 GA Apron Estimated 1,318,600 Cost/sq.ft. $70 $92,302,000 Hangars Conventional Hangars Total Square Footage 231,000 Cost/sq.ft. $200 $46,200,000 T-Hangars Total Units 12 Cost/Unit $140,000 $1,680,000 Small=1, Medium=2, Fuel System 2 $7,000,000 Large=3 0=None, 1=Nonprecision, Navigational Aids 2 $2,000,000 2=Precision Internal Roadways Total Linear Feet 29,450 Cost/l.f. $240 $7,068,000 Parking Garage Number of Spaces 2,678 Cost/Space $34,000 $91,052,000 Auto Parking Lots Total Square Footage 1,324,600 Cost/sq.ft. $20 $26,492,000 Perimeter Fence Total Linear Feet 32,000 Cost/l.f. $100 $3,200,000 Air Traffic Control Tower 0=No, 1=Yes 1 $10,000,000 Airline Terminal Total Square Footage 162,000 Cost/sq.ft. $900 $145,800,000 Non-Hangar Buildings Estimated 547,800 Cost/sq.ft. $300 $164,340,000 Solar Farm Total Acres 7 Cost/Acre $500,000 $3,500,000 Total Replacement Value $1,414,157,800 4.2. Current Value of Airport Facilities 17 R.A. Wiedemann & Associates, Inc. Page 54 of 143 2025 Economic Impact Assessment Burlington International Airport To estimate the existing (depreciated) value of BTV facilities, replacement values were adjusted using a useful-life framework that reflects the relative age and remaining service potential of major asset categories. This ARV approach applies age-based reductions to asset categories where physical depreciation is expected to materially affect current worth, while maintaining full replacement value for assets where ongoing maintenance and reinvestment are assumed to keep pace with depreciation. The ARV current-value estimate incorporates the following assumptions: • Paved areas (runways, taxiways, aprons, and lots): Replacement costs for paved facilities were reduced using condition/age brackets intended to reflect remaining useful life: - Excellent (0-5 years): 12.5% reduction - Good (6-10 years): 37.5% reduction - Fair (11-20 years): 60.0% reduction - Over 20 years: fully depreciated, reflecting the Airport’s ongoing pavement management program and periodic reinvestment in older pavement sections. • Hangars and non-hangar buildings: Building values and other Airport structures such as fencing and solar installations were adjusted using a 40-year benchmark life. The following reductions were applied to each facility’s estimated replacement value based on approximate age: - 0-5 years: 6.25% reduction - 6-10 years: 18.75% reduction - 11-20 years: 37.50% reduction - Over 20 years: 50.00% reduction • Other facilities: Certain assets such as fuel systems, the air traffic control tower, and instrument approaches were not reduced for this estimate. These facilities are assumed to receive ongoing maintenance and periodic upgrades such that replacement cost escalation generally tracks functional depreciation. Parking garage components were not reduced unless older than 20 years, where a 37.5% reduction was applied to reflect continued upkeep and reinvestment. • Land Value: The value used in the ARV metric was derived from recent commercial/industrial land sales data in South Burlington. Land is assumed not to depreciate, so the existing and replacement land values are treated as equivalent for purposes of the ARV estimate. The replacement values summarized in Table 3 were reduced in accordance with the estimated age and remaining useful life of each facility. As noted above, no depreciation was applied to land or select system assets like fuel systems because they are assumed to retain their functional replacement value over time. Table 4 presents the resulting estimate of current facility value based on remaining useful life principles. R.A. Wiedemann & Associates, Inc. 18 Page 55 of 143  2025 Economic Impact Assessment Burlington International Airport Using these assumptions, the Airport’s current value based on useful life is estimated at approximately $809.8 million, representing about 57.3% of total replacement value, as shown in Table 4. Table 4: Estimated Existing Value of Airport Property and Facilities Item 0-5 yrs 6-10 yrs 11-20 yrs Over 20 yrs Amount Land Value 942 $220,804,800 Pavement Runway 830,000 572,000 154,250 $95,505,000 Taxiway 1,340,000 440,700 1,226,940 $101,378,000 Airline & Military Apron 710,000 653,300 $44,375,000 GA Apron 310,000 85,000 186,300 737,300 $27,922,650 Auto Parking Lots 51,100 55,000 1,218,500 $1,334,250 Hangars Conventional Hangars 41,000 6,000 225,000 $26,837,500 T-Hangars 12 $840,000 Fuel System $7,000,000 Instrument Approaches $2,000,000 Parking Garage (# of spaces) 589 2,089 $64,417,250 Internal Roadways 3,700 11,900 13,850 $1,919,400 Linear Fence 32,000 $1,600,000 Air Traffic Control Tower $10,000,000 Airline Terminal 36,000 56,300 69,700 $93,408,750 Non-Hangar Buildings 178,000 21,500 307,300 $106,338,750 Solar Farm (Acres) 1 6 $2,281,250 Existing Facility Value $807,962,600 4.3. Return on Assets In addition to estimating replacement cost and remaining useful-life value, the ARV framework evaluates how effectively the Airport’s asset base supports ongoing activity. Return on Assets (ROA) is presented in two ways: an operational ROA based on the Airport’s own revenues, and an economic ROA based on the regional output supported by the Airport. Financial ROA (Operating Revenues ÷ Existing Facility Value) 19 R.A. Wiedemann & Associates, Inc. Page 56 of 143 2025 Economic Impact Assessment Burlington International Airport Financial ROA provides a practical indicator of how the Airport’s revenue-generating capacity compares to the estimated remaining value of its facilities. Using BTV’s most recent audited operating revenues of $22.59 million 12 and the estimated existing facility value of $808 million, BTV’s financial ROA is 2.8 percent. This result is best interpreted as a high-level efficiency indicator rather than a profitability target. Airports typically maintain large, long-lived infrastructure inventories such as airfield pavements, terminals, and support facilities that are essential for safety and capacity but are not designed to generate returns in the same manner as private-sector assets. As a result, a comparatively modest revenue-to-asset ratio is common, particularly when the denominator reflects the replacement- cost-based “useful-life” value of the full facility platform. Economic ROA (Economic Output ÷ Existing Facility Value) Economic ROA shifts the focus from airport revenues to the Airport’s broader purpose as a regional economic platform. It measures how much annual economic output is supported per dollar of remaining facility value. Using the study’s modeled annual economic output of $1.07 billion and the estimated existing facility value of $808 million, BTV’s economic ROA is 1.32, meaning BTV supports about $1.32 of regional economic output each year for every $1.00 of existing facility value. This relationship shows that even as infrastructure ages and depreciates in useful-life terms, it continues to generate substantial recurring economic activity. Provided that the Airport sustains the reinvestment needed to preserve safety, reliability, and functional capacity, improvements at BTV help maintain and extend the productive life of the assets that most directly enable ongoing operations and economic activity. 12 City of Burlington, Vermont. Patrick Leahy Burlington International Airport: Audited Financial Statements (Enterprise Fund), Year Ended June 30, 2024. City of Burlington, 2024. R.A. Wiedemann & Associates, Inc. 20 Page 57 of 143  2025 Economic Impact Assessment Burlington International Airport SECTION 5 Summary Of Airport Regional Value 21 R.A. Wiedemann & Associates, Inc. Page 58 of 143 2025 Economic Impact Assessment Burlington International Airport Section 5: Summary of Airport Regional Value The value of Patrick Leahy Burlington International Airport can be expressed through the economic activity it enables and supports within the regional economy. Consistent with the study’s methodology, this value is estimated through the economic impact analysis, beginning with direct activity associated with Airport operations, on-Airport businesses and tenants, military activity, visitor spending, and capital investment, and then applying regional multipliers to capture the successive rounds of re-spending that occur as dollars circulate through the local economy. In this way, the economic activity metric summarizes how the Airport supports jobs, payroll, output, and public revenues across the broader Burlington-region economy, not only on the airfield itself. 2025 2018 • Total Jobs: 5,646 4,935 • Total Payroll (Labor Income): $325,427,200 $170,427,100 • Total Economic Output: $1,069,768,500 $481,464,900 • Total State & Local Taxes: $62,535,300 $34,527,500 A second measure of Airport value involves the current value of Airport facilities and land. In this regard, the ARV method first estimates what it would cost to replace major facilities and infrastructure and then adjusts those costs based on remaining useful life by asset type. Using the Section 4 results, BTV’s existing facility value is estimated at $808 million (in 2018, it was $562.0 million). Taken as a snapshot in 2025, the overall value of the Airport to the region can therefore be framed as its annual economic activity of $1.07 billion in total economic output plus its current physical asset base of $0.809 billion, yielding a combined airport regional value of approximately $1.88 billion – a growth of 80.0 percent over the $1.043 billion value in 2018. R.A. Wiedemann & Associates, Inc. 22 Page 59 of 143  2025 Economic Impact Assessment Burlington International Airport Appendix A: Detailed IMPLAN Results Table 5: IMPLAN Detailed Employment Industry Description Direct Indirect Induced Total Accommodation and Food Services 959.1 48.9 123.3 1,131.3 Manufacturing 750.0 11.5 4.4 766.0 Transportation and Warehousing 725.3 119.8 33.1 878.2 Administrative Government 649.1 0.0 0.0 649.1 Arts, Entertainment, and Recreation 286.8 13.2 39.9 339.9 Construction 234.4 8.4 8.3 251.1 Retail Trade 199.2 75.7 164.4 439.2 Educational Services 3.0 3.4 48.5 54.9 Wholesale Trade 0.0 153.5 24.2 177.7 Administrative and Support and Waste Management and 0.0 92.6 43.0 135.6 Remediation Services Professional, Scientific, and Technical Services 0.0 74.2 53.6 127.9 Real Estate and Rental and Leasing 0.0 70.0 50.4 120.3 Finance and Insurance 0.0 40.7 60.0 100.7 Other Services (except Public Administration) 0.0 28.0 95.1 123.1 Information 0.0 21.0 19.3 40.2 Management of Companies and Enterprises 0.0 15.9 3.6 19.5 Government Enterprises 0.0 15.2 9.4 24.5 Utilities 0.0 3.7 2.9 6.7 Agriculture, Forestry, Fishing and Hunting 0.0 0.8 3.2 4.0 Mining, Quarrying, and Oil and Gas Extraction 0.0 0.7 0.2 0.9 Health Care and Social Assistance 0.0 0.0 285.1 285.1 Non-NAICS 0.0 0.0 0.0 0.0 Total 3,806.8 797.2 1,071.9 5,675.9 Multiplier: 1.49 23 R.A. Wiedemann & Associates, Inc. Page 60 of 143 2025 Economic Impact Assessment Burlington International Airport Table 6: IMPLAN Detailed Output Industry Description Direct Indirect Induced Total Manufacturing $399,868,111 $3,685,760 $1,553,952 $405,107,823 Accommodation and Food Services $95,065,646 $5,069,534 $12,636,073 $112,771,253 Transportation and Warehousing $88,299,134 $15,795,923 $4,228,650 $108,323,707 Wholesale Trade $0 $59,553,907 $10,755,600 $70,309,507 Real Estate and Rental and Leasing $0 $15,820,154 $42,420,369 $58,240,523 Retail Trade $14,172,035 $12,184,701 $20,234,935 $46,591,671 Administrative Government $45,310,978 $0 $0 $45,310,978 Health Care and Social Assistance $0 $985 $36,289,440 $36,290,425 Finance and Insurance $0 $12,958,321 $17,955,080 $30,913,401 Construction $26,580,889 $1,808,676 $1,682,594 $30,072,159 Professional, Scientific, and Technical $0 $15,551,145 $10,890,231 $26,441,375 Services Arts, Entertainment, and Recreation $17,912,613 $1,329,628 $3,872,512 $23,114,753 Information $0 $11,384,421 $8,478,236 $19,862,657 Administrative and Support and Waste $0 $12,062,438 $6,057,651 $18,120,089 Management and Remediation Services Other Services (except Public $0 $3,477,700 $9,792,565 $13,270,266 Administration) Utilities $0 $5,187,464 $3,855,154 $9,042,617 Government Enterprises $0 $3,628,680 $2,454,953 $6,083,633 Management of Companies and $0 $4,009,830 $894,421 $4,904,251 Enterprises Educational Services $304,838 $289,265 $3,520,744 $4,114,847 Mining, Quarrying, and Oil and Gas $0 $320,304 $139,554 $459,858 Extraction Agriculture, Forestry, Fishing and Hunting $0 $77,990 $344,721 $422,712 Non-NAICS $0 $0 $0 $0 Total $687,514,245 $184,196,825 $198,057,435 $1,069,768,505 Multiplier: 1.56 R.A. Wiedemann & Associates, Inc. 24 Page 61 of 143  2025 Economic Impact Assessment Burlington International Airport Table 7: IMPLAN Detailed Taxes Employee Proprietor Tax on Production Type Description Paying Households Corporations Total Compensation Income and Imports Social Insurance Tax- Employee Contribution $19,360,593 $1,373,786 $0 $20,734,380 Social Insurance Tax- Employer Contribution $17,269,995 $0 $17,269,995 TOPI: Excise Taxes $1,011,048 $0 $1,011,048 TOPI: Custom Duty $1,126,367 $0 $1,126,367 OPI: Corporate Profits Tax $0 $3,488,512 $3,488,512 Personal Tax: Income Tax $25,532,406 $25,532,406 Personal Tax: Estate and Gift Tax $0 $0 Federal Government Non-Defense Total $36,630,589 $1,373,786 $2,137,415 $25,532,406 $3,488,512 $69,162,707 TOPI: Sales Tax $21,969,431 $0 $0 $0 $0 $21,969,431 TOPI: Property Tax $27,133,143 $0 $0 $0 $0 $27,133,143 TOPI: Motor Vehicle License $477,284 $0 $0 $0 $0 $477,284 TOPI: Other Taxes $2,606,314 $0 $0 $0 $0 $2,606,314 TOPI: Special Assessments $58,442 $0 $0 $0 $0 $58,442 OPI: Corporate Profits Tax $0 $0 $0 $0 $1,805,190 $1,805,190 Personal Tax: Income Tax $0 ($1,171) ($1,027) $7,913,872 $0 $7,911,674 Personal Tax: Motor Vehicle License $0 $842 $4,977 $308,856 $0 $314,675 Personal Tax: Other Tax (Fish/Hunt) $0 $4 $1,649 $257,534 $0 $259,187 State/Local Non-Education Total $52,244,614 ($325) $5,598 $8,480,262 $1,805,190 $62,535,339 Grand Total $88,875,202 $1,373,461 $2,143,013 $34,012,668 $5,293,702 $131,698,047 25 R.A. Wiedemann & Associates, Inc. Page 62 of 143 2025 Economic Impact Assessment Burlington International Airport Table 8: IMPLAN State Tax Impacts Employee Proprietor Tax on Production Type Description Paying Households Corporations Total Compensation Income and Imports TOPI: Sales Tax $21,256,063 $0 $21,256,063 TOPI: Property Tax $19,144,941 $0 $19,144,941 TOPI: Motor Vehicle License $477,228 $0 $477,228 TOPI: Other Taxes $2,341,549 $0 $2,341,549 TOPI: Special Assessments $0 $0 $0 OPI: Corporate Profits Tax $0 $1,805,190.11 $1,805,190 Personal Tax: Income Tax ($1,171) ($1,027) $7,913,872 $7,911,674 Personal Tax: Motor Vehicle License $842 $4,976 $308,814 $314,633 Personal Tax: Other Tax (Fish/Hunt) $4 $1,649 $257,534 $259,187 Total State Tax Impacts $43,219,781 ($325) $5,597 $8,480,221 $1,805,190.11 $53,510,464 Table 9: IMPLAN County Tax Impacts Tax on Production Type Description Paying Employee Compensation Proprietor Income Households Corporations Total and Imports TOPI: Sales Tax $0 $0 $0 TOPI: Property Tax $61,000 $0 $61,000 TOPI: Motor Vehicle License $0 $0 $0 TOPI: Other Taxes $0 $0 $0 TOPI: Special Assessments $0 $0 $0 OPI: Corporate Profits Tax $0 $0 $0 Personal Tax: Income Tax $0 $0 $0 $0 Personal Tax: Motor Vehicle License $0 $0 $0 $0 R.A. Wiedemann & Associates, Inc. 26 Page 63 of 143  2025 Economic Impact Assessment Burlington International Airport Table 9: IMPLAN County Tax Impacts Tax on Production Type Description Paying Employee Compensation Proprietor Income Households Corporations Total and Imports Personal Tax: Other Tax (Fish/Hunt) $0 $0 $0 $0 Total County Tax Impacts $61,000 $0 $0 $0 $0 $61,000 Table 10: IMPLAN Sub County (Special Districts) Tax Impacts Employee Proprietor Tax on Production Type Description Paying Households Corporations Total Compensation Income and Imports TOPI: Sales Tax $0 $0 $0 TOPI: Property Tax $85,499 $0 $85,499 TOPI: Motor Vehicle License $0 $0 $0 TOPI: Other Taxes $29,438 $0 $29,438 TOPI: Special Assessments $9,220 $0 $9,220 OPI: Corporate Profits Tax $0 $0 $0 Personal Tax: Income Tax $0 $0 $0 $0 Personal Tax: Motor Vehicle License $0 $0 $0 $0 Personal Tax: Other Tax (Fish/Hunt) $0 $0 $0 $0 Total Sub County (Special Districts) Tax Impacts $124,157 $0 $0 $0 $0 $124,157 Table 11: IMPLAN Sub County (General) Tax Impacts Employee Proprietor Tax on Production Type Description Paying Households Corporations Total Compensation Income and Imports TOPI: Sales Tax $713,368 $0 $713,368 TOPI: Property Tax $7,841,703 $0 $7,841,703 TOPI: Motor Vehicle License $56 $0 $56 TOPI: Other Taxes $235,327 $0 $235,327 27 R.A. Wiedemann & Associates, Inc. Page 64 of 143 2025 Economic Impact Assessment Burlington International Airport Table 11: IMPLAN Sub County (General) Tax Impacts Employee Proprietor Tax on Production Type Description Paying Households Corporations Total Compensation Income and Imports TOPI: Special Assessments $49,221 $0 $49,221 OPI: Corporate Profits Tax $0 $0 $0 Personal Tax: Income Tax $0 $0 $0 $0 Personal Tax: Motor Vehicle License $0 $1 $42 $42 Personal Tax: Other Tax (Fish/Hunt) $0 $0 $0 $0 Total Sub County (General) Tax Impacts $8,839,675 $0 $1 $42 $0 $8,839,717 R.A. Wiedemann & Associates, Inc. 28 Page 65 of 143  2025 Eco Bur Burlington International Airport www.btv.aero 1200 Airport Drive South Burlington, VT 05403 Ph: 802-863-2874 1 R.A. Wie Page 66 of 143 To: Airport Commission From: Larry Lackey, Director of Planning, Engineering and Environmental Compliance Date: March 4, 2026 Subject: Airport Commission Construction Update 1. Environmental Assessment (est. $.25M). The purpose of this project is to evaluate environmental impacts related to the mitigation of obstructions with in the aircraft approach surfaces to the runways. This is in follow up to the recently completed Master Plan, which includes obstruction identification and environmental review. Completed, working on close out documents. 2. South Terminal Replacement Project ($73M). The purpose of this project is for overall terminal efficiencies and a better passenger experience. Due to increased aircraft seating existing passenger hold areas are overcrowded during peak times as identified in the recent Master Plan Update. Recently the opportunity had risen through the Airport Terminal Improvement Program (ATP) from the Bipartisan Infrastructure Law. We have submitted our request for full build out of this project, including: Demolition of the existing South Concourse; new Terminal improvements (approximately 45,000 SF of new gross floor area on 2 levels); five (5) new aircraft gates; up to four (4) new passenger boarding bridges (PBB), new passenger circulation and hold rooms; future concessions space; and apron construction within demolished South Concourse footprint. The South Terminal Replacement Project will be approximately 160' farther from Taxiway A as the existing South Concourse. We were not selected this past year and have reapplied for FFY23 design only. We have moved forward with schematics and preliminary cost estimates for existing potential funding source applications. ATP application for funding was submitted in January. 3. Cargo Apron Construction Project ($4.7M). The purpose of this project is to provide additional space for other potential cargo carry operations. Have submitted 7460-1 (Air Space Review) to FAA for this project. The scoping of the he project, design only has been completed with the FAA. The IFE process for completion before a FAA Grant Application in April has been completed. Grant Application was submitted on April 3, 2023. Grant has been issued, moving to finalize contract. The contract has been issued to Hoyle, Tanner and Associates with the design to start. It has been determined that this project will require additional FAA technical operations review prior to proceeding. The FAA updated review has been issued as favorable, and the project design is moving forward. We plan on bidding this project in March. Project design is complete. Working on permit applications. We anticipate we will apply for a grant in April of 2026 for construction. Page 67 of 143 March 4, 2026 Airport Commission Construction Update Page 2 of 6 4. SRE Building Design ($29M). The purpose of this project is to replace the existing out dated facilities, which does not meet the storage needs of the required equipment to maintain the airfield. A contract for study is being completed with programing and scoping moving forward. The scoping session with the FAA has been completed. The final scope is complete with the IFE process was completed. The Grant Application was submitted to the FAA. Contract has been signed with Passero Associates to design and bid this project. Site investigations were completed in November. The site plan is developed with the building design at 30%. We have had page turn of the draft plans. Applications for permits are being moved forward. A pre –Application meeting was held with South Burlington Planning and Development Staff in preparation for an upcoming DRB hearing. Permit Applications are being prepared. We presented to the South Burlington DRB on June 3rd. The hearing was not closed. There were items that needed follow up. We have followed up on these items and are scheduled back with the DRB on July 1, 2025. The SB DRB process has been completed. Permits have been issued. Bids for construction were received on January 9, 2026. We had 3 bidders. The bids are under review. 5. FAA CIP for FY26 and next 5 years. We met with the FAA Airports Division on September 17, 2025. Items discussed for FFY26, cargo apron construction, SRE building construction, obstruction removal easements, final application to complete project NeXT, RSIP Phase 6 considering receipt of the $7.3M grant from OLDCC, centralized deicing and the following 5 years. We updated the CIP with these consideration and have received the FAA’s comments on this. We will be updating again and resubmitting. Submitted and Accepted. 6. BETA – Development Communication and coordination with Beta on the first phase of the Electric Aircraft Assemble Facility and Valley West Hangar for all aspects of permitting, environmental, engineering, utilities and attendance at public hearing and construction meetings. The first Phase is complete. We are coordinating with Beta on all aspects of their new development. Currently the child care center, manufacturing B build permitting in moving forward with the Alia Hangar under construction. 7. South Apron and TW G Ext. Development ($6.6). The purpose of this project is to provide much needed additional general aviation apron area on the airfield. Completed, working on closeout documents. 8. Glycol System Upgrade (est. $3.5M). The purpose of this project is to improve the glycol system (De- icing). We have had additional follow up discussions with the FAA and it appears this is eligible for funding and is being added back into our FAA CIP. We have received and reviewed the site evaluation and process review scope. We brought this for Airport Commission approval last month subsequently, it was approved by City Council. Study is moving forward. We visited the Syracuse Airport to evaluate and understand the technology they were using to compare to our Portland Jetport visit. The Draft study has been issued and is under review by the airport team. A review session with Stantec was completed. We had a joint meeting last week with our consultant and our FBO Heritage Flight to get their input. The final report is completed. A 7460 – 1 (Siting review) has been submitted for the siting of the first site location for review. This has been determined to be our priority project with the most recent FAA CIP review. We are working on our CIP with the FAA, to see when this can be funded. Then Page 68 of 143 March 4, 2026 Airport Commission Construction Update Page 3 of 6 we can start scoping the project with the FAA. Awaiting sitting review response from FAA. 9. North Terminal Improvement Project ($2.2M). The purpose of this project is for overall terminal efficiencies and a better passenger experience due to the completion of the TIP the north terminal will be upgraded to provide more capacity for passengers and concessions. This includes the removal of the existing north TSA station along with the removal of the existing escalators. This project is under design and funding is anticipated from the recent approval of the Infrastructure Law. Received Bids with the selected bidder being Engelberth Construction, Inc. Preparing and submitting Grant Application. This will become a FFY23 Project. We have received the Grant from the FAA. Construction is nearing completion, and should be complete by September 15th. There was a delay related to the glass for the new restaurant area. Construction is complete with final inspection with the FAA completed on 10/30/23. Project closeout in process. We have applied for an additional grant to add additional egress lanes in both the North and South Terminal locations. A grant application was submitted April 26th to the FAA. Received BOF approval to accept the Grant on June 17, 2024, City Council to vote on June 25, 2024. Grant has been issued for the two new egress lanes. A review of the issued funding is being reviewed by the airport on how much money can actually be used from the grant for this project. This determination is close to being resolved. Due to FAA rules this grant is being sent back because it does not support the full extent of this project. 10. PROJECT NEXT: North Terminal Replacement Project and New PBB’s ($69M). The purpose of this project is for overall terminal efficiencies and a better passenger experience. Due to increased aircraft seating existing passenger hold areas are overcrowded during peak times as identified in the recent Master Plan Update. Recently the opportunity had risen from Senator Leahy’s office through Congressional Directed Spending. We have submitted our request for full build out of this project Phase III Terminal Improvement Project, including: Demolition of the existing North Concourse; new Terminal Improvement (approximately 25,000 SF of new gross floor area on 2 levels); five (5) new aircraft gates; six (6) new passenger boarding bridges (PBB), new passenger circulation and hold rooms; future concessions space; and apron construction within demolished North Concourse footprint. Contract for 30% design has been issues to Jacobs Engineering Group. Geo-technical site work has been completed. Data collection and design currently on going. We submitted to the FAA for a Construction Manager at Risk (CMAR) RFQ/P construction development process. We received approval from the FAA on this procurement process. The RFQ/P for CMAR has been advertised with a pre-bid meeting and site visit by prospective contractors completed. CMAR Proposals received reviewed and scored. Also, held interviews with the top 3 contractors. This has been scored and we can let you know the selected contractor at the AC meeting. As reported the CMAR selected is Engelberth Construction Company. The contract with our design engineer, Jacobs Engineering Group, is completing the 80% design to move to pricing. We received City Council approval to accept the Grant on March 25 for this project, as brought for your approval during our last meeting. Our CMAR is in the process of receiving bids for the final price for this project. The FAA asked us to submit a draft grant application for administrative review prior to final construction pricing to help us expedite the grant issuance, with them once final pricing is in. The Draft Application was completed and submitted on March 27. The FAA grant application was submitted on May 23. Received BOF approval to accept the Grant on June 17, 2024, City Council to vote on June 25, 2024. We received the Grants for this Page 69 of 143 March 4, 2026 Airport Commission Construction Update Page 4 of 6 project. The work has started and is ongoing the project. We submitted the NeXT Grant Application - 3 with Contractor Change Orders to support the new passenger boarding bridges and the second floor renovations, on April 28, 2025. This grant was recently received. The jet bridges have been ordered and the bases are being set. We are working on the final grant application for items that will wrap this project up. This includes but is not limited to the balance of the second floor renovation, additional apron and heating and cooling systems. We’ll be applying for the final grant for this project by April for this project. Conceptual Renderings – North and South Terminal (concourse) Improvements Page 70 of 143 March 4, 2026 Airport Commission Construction Update Page 5 of 6 11. RW 15 – 33 Improvements – Mill and Overlay (15M). The project is complete, with a few minor punch list items to be completed. Final inspection was completed with the FAA present. We are moving this project to close out. 12. Airfield Pavement Plan Update ($.25M). The purpose of this project is to update the outdated pavement condition report done in 2017. All surfaces will be evaluated so we can plan on future improvement for the safety of the aircraft users. Scoping has been completed with the FAA. We have completed the IFE. A Grant Application was submitted on April 3, 2023. Investigations have started, and the grant has been issued. Moving to finalize contract. The Contract has been issued to HTA with the investigations being completed. The report has been finalized. We will move to closure with this project. 13. TW C/G Rehabilitation ($4.6M). The purpose of this project is to improve the pavement condition of the airport’s taxiway C and intersection at taxiway G. Bids were received on April 24, 2025. We received 2 bids. Pike Industries was the lowest most responsive bidder. The FAA Grant Application was submitted on April 28, 2025. Construction will begin in the spring of 2026. This grant was recently received. A NOA has been given to the contractor with contract being completed. Contracts have been issued with the Contractor with construction starting in the spring. 14. Obstruction Removal ($0.5M). The purpose of this project is to remove potential obstructions with in the aircraft approach surfaces to runways 15 and 33. Environmental Assessment is almost complete with the scoping session with the FAA to be scheduled. FAA Grant Application is pushed back to May 1, 2026. This is due to a review of our existing easement and a determination if others may be Page 71 of 143 March 4, 2026 Airport Commission Construction Update Page 6 of 6 required Construction will begin as soon after grant is issued as possible taking into environmental conditions. We completed the scoping session with the FAA on the easement and obstruction removal support services. 15. Runway 33 Threshold Bar Improvement Project ($.25M). The purpose of this project is to remove the damaged navigational aid, replace the lights and rings, and place a quick dry durable concrete for a longer term fix. This project has been completed and the FAA flight check completed. Closeout will be completed with the RW 15-33 Project. 16. VTANG Arrester Cable Drainage (Stormwater) Project ($1.5M). This project involves repairing and modifying the existing Aircraft Arresting Systems (AAS), which are safety mechanisms designed to rapidly decelerate aircraft during landings or takeoffs by catching the aircraft with cables or barriers. The improvements will include upgrading the drainage system by adding infiltration galleries and connecting it to the existing stormwater system, ensuring continued compliance with state and federal stormwater regulations. Enhancements include upgrading the sump pump capabilities to establish redundant drainage functions in each barrier pit, updating the control system for flood-level monitoring, and relocating the Arresting Gear Markers. The AAS at Leahy BTV are the only functioning systems for this installation and are critical to operations. This project is being completed concurrently with the Runway 15 – 33 Rehabilitation Project. The project was bid. Engineers Construction, Inc. (ECI) was selected to complete this work. We have a signed contract from ECI and have received final documents from VTANG. The contract has been executed by the Airport. The project is complete, with a few minor punch list items to be completed. Final inspection was completed with VTANG present. We are moving this project to close out. Page 72 of 143 Patrick Leahy Burlington International Airport Board of Commissioners Residential Sound Insulation Program Update Report March 4, 2026 ADDITIONAL INFORMATION IS UPLOADED TO WWW.BTVSOUND.COM BACKGROUND: Residential Sound Insulation Programs: The purpose of the project is to convert a sample of incompatible residential units to a compatible land use by installing an acoustical treatment package which will provide relief from aircraft noise by upgrading interior living areas. Upgrades may include replacement of windows and doors with acoustically rated products and installation or upgrade of ventilation systems. The sound insulation treatments are designed to reduce the interior noise levels to below 45 DNL and provide a minimum noise level reduction of 5dB. PHASES OF THE RESIDENTIAL SOUND INSULATION PROGRAM (RSIP) 1. Sound Insulation Pilot Project (Phase 1) ($1.5M). This Program includes: Program formulation, Home eligibility determination, project schedule for this Phase 1 portion included 9 properties, and construction improvements are substantially complete. Received Grant Amendment. Awaiting Closeout documentation and final payout from the FAA. 2. Residential Sound Insulation Project - Phase 2 ($2.20M) The purpose of the project was to convert incompatible residential units to a compatible land use by installing an acoustical treatment package which will provide relief from aircraft noise by upgrading interior living areas as defined in the Phase 1 project and the Noise Compatibility Program. The Airport continued implementation of its Residential Sound Insulation Program (RSIP). This grant included: community outreach, historic review, design and bidding of 52 homes, noise reduction of 6 Page 73 of 143  Page 2 of 4 homes which construction improvements were substantially completed and close out is ongoing with the contractor. Properties were located within the 70+ DNL FAA accepted 2023 noise contours. The installation of noise reduction materials for the 5 properties was completed. Materials were purchased for the 6th property however the homeowner left the area. It will be completed with the next phase of homes. The close out is completed with the contractor. Moving to closure. 3. Residential Sound Insulation Project - Phase 3 ($6.2M). The Airport is continued implementation of its Residential Sound Insulation Program (RSIP) as described in more detail above. This grant was issued and includes: the construction improvements of the 52 Homes designed and bid in Phase 2, in addition it provides for community outreach, historic review, design and bidding of the next approximately 50 homes for improvements. The schedule for installing the noise insulating improvements for the 52 homes started in 2024. The Construction Improvements has started on this phase of homes and will continue through September 2025 Punch list items were completed in January 2026. Moving to Closure. 4. Residential Sound Insulation Project - Phase 4 ($3.9M EST.). The Airport is proposing to continue implementation of its Residential Sound Insulation Program (RSIP) as described in more detail above. We are currently reviewing the status of the programing and will be able to detail this in our next month’s airport commission meeting. The initial grant for 16 of the 50 homes for construction improvements was submitted grant was received from the FAA. Also in the grant was the funding for the next 50 homes. As discussed we are completing the required new acoustical testing for the balance of the 50 homes so we can do a follow grant application on those homes. (See update above) The Buy American process moving forward but awaiting grant for the 16 homes. We received the grant for this phase however; the amount ($)’s was slightly less than what the application was. Based on instructions from the FAA we will leave the scope intact for this project and just amend the grant during closure. The Contact with Strong Tower to start construction improvements has been signed. The Construction Improvements has started on this phase of homes and will continue through December 2025. Punch list items were completed in January. Moving to Closure. 5. Residential Sound Insulation Project - Phase 5 ($2.4M EST.). The Airport is proposing to continue implementation of its Residential Sound Insulation Program (RSIP) as described in the first paragraph in this report. It includes the construction improvements of 6 units that remain in the above 70 DNL contour. Also, due to the change in the FAA acoustical requirement additional funding is being requested for homes in outreach from Phase 4. We submitted a grant application to the FAA on April 28, 2025 for this phase. The grant was just recently issued. Contract documents and submittals are in progress. The Pre-Construction meeting held with the FAA. Construction to start in the spring. Page 74 of 143  Page 3 of 4 6. Noise Exposure Map Updates (NEM) (est. $.85M). The purpose of the Federal Aviation Administration (FAA) grant is to prepare a 14 C.F.R Part 150 Noise Exposure Map (NEM) update for Patrick Leahy Burlington International Airport (Leahy BTV). The NEM Update replaced the maps which were accepted by the FAA in 2019. Under the Federal requirements, the previous NEM Update indicated an update would be completed once the F-35A aircraft have been operational for one year. This project is complete and we are moving it to closure. Page 75 of 143  Page 4 of 4 7. Residential Sound Insulation Project “Construction” – OLDCC (DOD) ($8.1M EST.). We received this grant funding and will provide further update during the October meeting. Communication has resumed with the OLDCC office. Design has started on the projected homes. 8. Residential Sound Insulation Project - Phase 6 (TBD). The Airport is proposing to continue implementation of its Residential Sound Insulation Program (RSIP) as described in the first paragraph in this report. With the OLDCC award we are currently planning our approach for the FAA 2026 grant application season. This will include the Construction Administration and Resident Project Representative for the OLDCC construction and preparation for a full construction grant application in the next round. Page 76 of 143 Page 77 of 143 Page 78 of 143 Page 79 of 143 Page 80 of 143 Page 81 of 143  PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT FINANCIAL STATEMENTS (An Enterprise Fund of the City of Burlington, Vermont) Page 82 of 143 AS OF AND FOR FISCAL YEARS ENDED June 30, 2025 and 2024 Page 83 of 143  Patrick Leahy Burlington International Airport (An Enterprise Fund of the City of Burlington, Vermont) Table of Contents Page Independent Auditors’ Report 1 Management’s Discussion and Analysis 4 Basic Financial Statements: Statement of Net Position 15 Statement of Revenues, Expenses, and Change in Net Position 17 Statement of Cash Flows 18 Notes to the Financial Statements 20 Required Supplementary Information: Pension: Schedule of Proportionate Share of the Net Pension Liability 42 Schedule of Pension Contributions 43 OPEB: Schedule of Proportionate Share of the Total OPEB Liability 44 Page 84 of 143 Passenger Facility Charge: Independent Auditors’ Report on Compliance with Requirements of the Passenger Facility Charge Program; Report on Internal Control Over Compliance; and Report on the Schedule of Passenger Facility Charges Required by the Federal Aviation Administration Passenger Facility Charge Branch 45 Schedule of Passenger Facility Charges 48 Schedule of Findings and Questioned Costs 49 Page 85 of 143  CBIZ CPAs P.C. 9 Executive Park Drive Suite 100 Merrimack, NH 03054 P: 603.882.1111 Independent Auditors’ Report To the Honorable Mayor, City Council And Burlington Airport Commission City of Burlington, Vermont Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Patrick Leahy Burlington International Airport (the “Airport”), of the City of Burlington, Vermont (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Airport’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 financial position of the Airport, as of June 30, 2025, and the changes in its financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion 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 issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Airport and to meet our other ethical responsibilities, in accordance with the 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 audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements of the Airport are intended to present the financial position, changes in financial position and cash flows of only that portion of the business-type activities of the City that is attributable to the transactions of the Airport. They do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2025, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. CBIZCPAS.COM 1 Page 86 of 143 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. Auditors’ 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 auditors’ report that includes our opinion. 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. In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • 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. • 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 Airport’s internal control. Accordingly, no such opinion is expressed. • 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. 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. Prior Period Financial Statements The financial statements of the Patrick Leahy Burlington International Airport as of and for the year ended June 30, 2024 were audited by Marcum LLP, whose report dated January 24, 2025, expressed an unmodified opinion on those statements. 2 Page 87 of 143 Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis, and certain Pension and OPEB schedules be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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. Other Reporting Required by Government Auditing Standards In accordance with the Government Auditing Standards, we will issue our report on our consideration of the City of Burlington, Vermont’s (“the City’s”) internal control over financial 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 financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting and on compliance. That report is an integral part of an audit performed in accordance with the Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Merrimack, NH February 23, 2026 3 Page 88 of 143 MANAGEMENT’S DISCUSSION AND ANALYSIS AS OF JUNE 30, 2025 AND 2024 Within this section of the Patrick Leahy Burlington International Airport’s (the Airport) annual financial report, management provides a narrative discussion and analysis of the financial activities for the years ended June 30, 2025 and 2024. The Airport’s performance is discussed and analyzed within the context of the accompanying financial statements and note disclosures following this section. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the basic financial state- ments. The basic financial statements include (1) the Statement of Net Position, (2) the Statement of Revenues, Expenses, and Change in Net Position, (3) the Statement of Cash Flows, and (4) Notes to the Financial Statements. The Statement of Net Position is designed to indicate our financial position as of a specific point in time. At June 30, 2025, it shows our net position of $260,179,160, a change of $26,605,441 from June 30, 2024. At June 30, 2024, it shows our net position of $233,573,719, a change of $10,779,505 from June 30, 2023. The largest portion of net position, $212,443,758 and $192,124,116 at June 30, 2025 and 2024, respectively, reflects our net investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. This portion of net position increased by $20,319,642 and $1,213,428 in the years ending June 30, 2025 and 2024, respectively. Net investment in capital assets increased primarily from the acquisition of capital assets from AIP Grants less depreciation expense exceeding the debt service principal payment during the fiscal years. 4 Page 89 of 143 An additional portion of net position of $21,126,199 and $21,293,388 at June 30, 2025 and 2024, respectively, represents resources that are subject to external restrictions on how they may be used (restricted net position). This portion of net position decreased by $167,189 for the year ending June 30, 2025 primarily from the decrease in the restricted PFC cash balance. This portion of net position increased by $1,213,428 for the year ending June 30, 2024 primarily from the increase in the restricted PFC cash balance. The remaining balance, or unrestricted net position, was $26,609,203 and $20,156,215 at June 30, 2025 and 2024, respectively. This portion of net position increased by $6,452,988, or 32% for the year ending June 30, 2025 and by $1,806,134, or 10% for the year ending June 30, 2024. The Statement of Revenues, Expenses, and Change in Net Position summarizes our operating results and reveals how much, if any, of a profit was earned for the year. As discussed in more detail below, our change in net position was $26,605,441 and $10,779,505 for the years ending June 30, 2025 and 2024, respectively. There are two significant components of this change. The first is the net loss before capital contributions of ($5,021,879) and ($4,961,130) for the years ending June 30, 2025 and 2024, respectively. The second component is the recognition of the capital contributions received from the Federal Aviation Administration (FAA) for capital improvements of $28,767,663 and $13,163,060 for the years ending June 30, 2025 and 2024, respectively. Collectively, these two components account for the net increase in net position. The Airport received significant stimulus grants under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) $8.7M, Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) grant $4.04M and the American Rescue Plan Act (ARPA) grant for $7.6M since 2020. The Airport used $2,534,826 and $1,247,428 of the stimulus grant funds to cover fiscal year 2025 and 2024 operating expenditures, respectively. 5 Page 90 of 143 Financial Highlights: The following is a summary of condensed financial data for the current and prior fiscal year. Summary of Net Position (000s) 2025 2024 2023 Assets: Current and other assets $ 63,330 $ 59,941 $ 58,326 Capital assets 249,975 225,674 218,793 Total Assets 313,305 285,615 277,119 Deferred Outflows of Resources 750 977 863 Total Assets and Deferred Outflows of Resources $ 314,055 $ 286,592 $ 277,982 Liabilities: Current and other liabilities $ 16,017 $ 9,045 $ 6,016 Long-term liabilities 26,395 29,635 32,981 Total Liabilities 42,412 38,680 38,997 Deferred Inflows of Resources 11,464 14,338 16,191 Net Position: Net investment in capital assets 212,444 192,124 184,364 Restricted 21,126 21,294 20,080 Unrestricted 26,609 20,156 18,350 Total Net Position 260,179 233,574 222,794 Total Liabilities, Deferred Inflows of Resources, and Net Position $ 314,055 $ 286,592 $ 277,982 6 Page 91 of 143  Summary of Change in Net Position 2025 2024 2023 Revenues $ 23,798 $ 22,959 $ 22,591 Operating expenses (31,768) (29,540) (24,866) Operating loss (7,970) (6,581) (2,275) Nonoperating Revenues (Expenses) Other revenue 3,915 5,571 5,663 Other expenses (967) (1,373) (1,252) Total Non-Operating Revenues and Expenses, Net 2,948 4,198 4,411 Net Income Before Capital Contributions (5,022) (2,383) 2,136 Capital contributions - grants 31,627 13,163 8,771 Change in Net Position 26,605 10,780 10,907 Beginning Net Position 233,574 222,794 211,887 Ending Net Position $ 260,179 $ 233,574 $ 222,794 Operating revenues changed by $839,249 and $368,212 for the years ending June 30, 2025 and 2024, respectively, an increase of 3.6% in 2025 and 1.6% in 2024. The biggest increases in revenues occurred in parking garage and landing fee revenues in 2025. The biggest increases in revenues occurred in parking garage revenues, car rental concessions, and terminal concessions in 2024. Additional discussion for this change can be found in the Revenues section of this MD&A. Operating expenses changed by $2,227,750 in 2025 and $4,673,917 in 2024, an increase of 7.5% in 2025 and 18.8% in 2024. This change in 2025 and 2024 is mostly attributed to the increases in depreciation, professional contracts, salaries and benefits, utilities, and increases in repairs and maintenance costs. This also includes FAA non-capitalized operating grants such as the residential sound insulation programs. Capital Assets: Capital Assets - Net capital assets changed by $24,301,206 in 2025, the difference between current year additions, net of CIP reclassification of $7,647,338 and annual depreciation expense of $8,036,241. Net capital assets changed by $6,880,407 in 2024, the difference between current year additions, net of CIP reclassification of $5,410,820 and annual depreciation expense of $8,149,622. 7 Page 92 of 143 Significant capital asset additions for the years ending June 30 include: 2025 2024 $ 23,371,003 $ 2,504,842 North Terminal Concourse Replacement $ 5,173,961 $ 551,854 Runway 15-33 Mill & Overlay $ 413,547 $ 2,642,216 Taxiway A Mill & Overlay $ 122,326 $ 625,197 Taxiway A Mill & Overlay Taxiway C Intersecti $ 54,267 $ 4,092,442 South Apron Construction $ - $ 920,589 Terminal Apron Phase 7, part 2 & 3 $ - $ 516,244 Passenger Boarding Bridge $ - $ 508,118 North Terminal Renovation Additional information on capital assets can be found in the Notes to the Financial Statements. Long-Term Debt: Long-Term Debt – At June 30, 2025 and 2024, total bonded debt outstanding, including unamortized premiums, was $20,360,595 and $23,360,599, respectively, all of which was backed by the full faith and credit of the City of Burlington, Vermont. In December 2024, Moody’s Investors Service (Moody’s) upgraded the Airport’s bond rating from Baa2 to Baa1. The upgrade to Baa1 reflects strong utilization rates, sound core financial metrics and robust cost-recovery framework relative to its established airline agreement. The report also praised the airport’s liquidity – over 300 days of cash on hand and manageable capital investment program funded largely by federal grants. Moody’s affirmed this rating on August 28, 2025. Likewise, on September 19, 2018, Fitch Ratings (Fitch) upgraded the Airport’s bond rating from BBB– to BBB with a stable outlook. On April 9, 2020, Fitch affirmed the BBB rating and revised the outlook to negative due to the COVID-19 uncertainty. On March 5, 2022, Fitch Ratings affirmed the BBB rating and upgraded the outlook to stable due to revenues and enplanements recovering strongly. Fitch affirmed this rating last on March 14, 2024. No new Airport bonds were issued during fiscal year 2025. The Airport issued $10.635 million in Airport Revenue Refunding Bonds, Series 2022A in June 2022. The bonds were callable and the Airport was able to take advantage of interest rate savings on future debt payments. Additional information on long-term debt can be found in the Notes to the Financial Statements. Historical Airport Operating and Financial Performance The City of Burlington, Vermont (the City) accounts for the financial operations of the Airport as an enterprise fund. On an annual basis, the Airport has historically generated revenues sufficient to pay its operating expenses, to meet its bond debt service, and to fund a portion of its capital expenses. The rate covenant requires the Airport to generate annual revenues, net of operating expenses, of no less than 1.25 times debt service, and sufficient to meet all funding requirements 8 Page 93 of 143 for the Airport’s accounts under the resolution. The City has paid all bond debt service and other financial obligations timely and in full. The Airport debt coverage score for FY 2025 was 1.95 and 2.02 with additional Passenger Facility Charges (PFC’s) as allowed. Revenues The Airport derives its revenues from a variety of sources, including terminal revenues, parking, landing fees, car rentals, concessions, and rentals of buildings and grounds. It has also applied for and been granted permission by the FAA to charge and collect PFCs for qualified capital expend- itures and certain debt service. The following table shows each of these revenue items since fiscal year 2021: Historical Revenues (000s) Fiscal Year Ended June 30 2021 2022 2023 2024 2025 Airline Revenues Terminal Revenues $ 2,828 $ 2,844 $ 2,836 $ 2,688 $ 2,702 Landing Fee Revenues 829 1,702 2,006 1,864 2,350 Total Airline Revenues 3,657 4,546 4,842 4,552 5,052 Non-Airlines Revenues Parking Lot/Garage 1,642 5,523 6,935 7,146 7,776 Car Rental Concessions 1,303 2,836 3,294 3,668 3,737 Terminal Concessions 317 430 393 676 807 Terminal Non-Airline Rent 632 628 756 840 576 Building and Ground Rent 1,387 1,659 1,736 1,557 1,437 Other Non-Airline Revenues 3,129 2,748 2,580 2,392 2,221 Total Non-Airline Operating Revenues 8,410 13,824 15,694 16,279 16,554 CFC Revenues 488 1,723 2,396 2,128 2,192 Total Operating Revenues $ 12,555 $ 20,093 $ 22,932 $ 22,959 $ 23,798 Y-O-Y Operating revenue Growth 60.0% 14.1% 0.1% 3.7% PFC Revenues $ 936 $ 2,283 $ 2,573 $ 2,578 $ 2,860 Terminal Revenues and Landing Fees Terminal revenues and landing fees are paid by the airlines that operate at the Airport. Such fees are calculated pursuant to the airport airline agreements. The Airport has established five airport cost centers in order to fairly allocate Airport operating costs among the airlines and other tenants. The airlines signed the new airline agreements during FY 2017. American Airlines, United, Delta, and Jet Blue all signed the agreements and are considered signatory airlines. The new airline agreement, which is a residual method contract, outlines the airline rates and charges methodology which were in effect from July 1, 2016 through June 30, 2021 and is continuing on a monthly basis. This five-year residual airline agreement provides strong and timely cost recovery. In 2022, Sun Country began service at the Airport. Jet Blue ended service to the Airport in January 2024. Breeze Airways began service in January 2024 bringing direct flight to several Florida 9 Page 94 of 143 destinations. Additionally, Frontier returned to the Airport in December 2024 also serving the Florida market. Lease discussions are on-going. Parking Current parking fees in the garage are $12 per day. Parking rate increased to $14 per day in July 2025. Parking revenues represented approximately 32.7% of the Airport’s total operating revenue in fiscal year 2025, with an increase of 3% from the previous year. This follows multiple years of substantial growth. This increase was due to higher numbers of passengers flying in and out of the Airport. Car Rental Facilities Car rental revenues represented approximately 16% of the Airport’s total operating revenue in fiscal year 2024. Car rental revenues increased 11.4% from the previous year, again due to higher numbers of passengers flying in and out of the Airport. Car rental facilities occupy office and counter space within the terminal building adjacent to the luggage receiving area. In the fall of 2015, the Airport finalized car rental concession agreements with Avis/Budget, Hertz, Dollar, Enterprise, National/Alamo, which are in effect through June 30, 2026. All existing car rental companies continued providing service at the Airport and signed the new five-year agreement. In addition to terminal space, the rental car companies also occupy the second floor north of the parking garage and an onsite car wash facility immediately north of the FAA control tower. $285,253 of the collected CFCs were utilized to support the operating expenses of the garage, per the car rental agreements. CFC’s of $456,417 covered garage expansion bond debt payments. The City allocated $345,015 of the CFC charges collected to pay for the lease financing and costs of a consolidated quick turnaround car wash/return facility (QTA) which replaced the existing facility. This new facility will also provide the airport with an opportunity for an additional revenue stream in the form of land lease and transactions fees. The QTA opened in October 2021. CFCs contributed $210,075 during fiscal year 2025 for QTA operational costs. Terminal Concessions Terminal concessions, such as food vendor Skinny Pancake, and gift/necessities vendors, such as Hudson News and other similar establishments, provide a variety of services for passengers, visitors, and employees at the Airport. Skinny Pancake, a local restaurant with three locations at the Airport, and newly expanded Hudson News facilities opened in fiscal year 2013. Food concession revenues increased by 19.4% for fiscal year 2025 due to the Airport having significantly more passengers flying in and out of the Airport than fiscal year 2024. Terminal concession revenues represented approximately 3.4% or $806,664 of the Airport’s total operating revenue in fiscal year 2025. Buildings, Grounds, and Airfield Concession Revenues Building and ground rent and airfield concession revenues (“Other Non-Airline Revenues”) include revenue from certain parcels within the existing Airport footprint that have been rented to firms 10 Page 95 of 143 such as Federal Express, Pratt & Whitney, Betta Technologies and Heritage, as well as hangar and facility rentals from cooperatives using the Airport for general aviation. Buildings, grounds, and airfield concession revenues represented approximately 6% of the Airport’s total operating revenue in fiscal year 2025. These revenues decreased slightly from the previous year. Other Revenue Other revenues include federal operating grants, interest income, administrative fees, and tenant reimbursements. The tenant reimbursement component relates to property tax and casualty insur- ance assessments. Changes to this miscellaneous income are primarily affected by fees assessed by third party agencies. Passenger Facility Charges The Airport has applied for and received authorization from the FAA to impose and collect PFCs to fund many of the capital improvements it has initiated since 1997. In fiscal year 2025, the Airport received $2,859,657 in PFC revenues. $1,005,221 was used to pay a portion of bond debt service attributable to authorized PFC projects and were included as part of the bond refinancing in April 2021 Series A. In June 2022 the FAA approved the airport’s PFC application #8 to pay for snow equipment leases as well as the local share of numerous FAA grants. In March 2025, the FAA approved the airport’s PFC application #9 to pay for snow equipment leases as well as the local share of numerous FAA grants. The airport received $2.2 million in 2025 under this application. As of June 30, 2025, the Airport had approximately $8.5 million on deposit in the PFC revenue account, which is adequate to pay for the PFC projects being financed with Airport revenue bonds. The Airport expects to continue to apply for authority to impose and collect PFCs for future projects under applicable FAA regulations. The Airport is submitting another PFC application due to the FAA in April 2026. Expenses The Airport’s expenses include typical expense categories covering airport operations. One expense that is not paid for by the Airport is the aircraft rescue and firefighting services that are provided by the VT Air National Guard (VTANG) as part of its lease with the Airport, saving the Airport approximately $4 million annually. VTANG’s lease was recently extended to the year 2073. Salaries and benefits increased 12.3% in fiscal year 2025. This is due to contractual costs of living increases, higher benefits costs and adding new Airport positions. Service contracts represent third- party maintenance and other non-capital projects. This City interdepartmental expenses are the amounts reimbursed by the Airport to the City for financial, legal, and other necessary services the City provides to support the operations of the Airport. 11 Page 96 of 143 Recent Financial Performance Airport net revenue was determined to have been above the rate covenant requirement of 1.25× of debt service in fiscal years 2011 through 2021. For fiscal year 2022 and 2023, the debt coverage calculation was not applicable. The Airport refinanced the fiscal year 2022 revenue bond principal and interest payments with the 2021 Series A revenue bond. Therefore, the Airport did not have to pay debt service using Airport funds in 2022 and only interest was paid in 2023. Principal and interest payment resumed in fiscal year 2024. The Airport’s FY 2024 debt coverage score was 1.80. This included stimulus grant revenues. Operation and maintenance expenses, and other obligations of the Airport were fully and timely paid in each of those years. The financial health and performance of the Airport is taken very seriously by the City, the Airport Commission, and Airport management. Significant attention has been devoted to improving the Airport’s financial operations in the past several years, including increasing non-airline dependent revenues and maintaining debt service coverage in accordance with the requirements of the resolution. The outbreak of the Coronavirus pandemic primarily impacted the last four months of fiscal year 2020, and impacted the Airport for several years. The entire travel industry was greatly affected with travel being significantly reduced for the time being. The FAA recognized this and responded by issuing CARES ACT grants to airports. The Airport received an $8.7 million CARES ACT grant in May 2020. In the spring of 2021, the FAA awarded the Airport at $4.04 million CRRSA grant. Additionally in December 2021 the Airport received $7.6 million under the ARPA grant. The Airport used $2.5 million in stimulus grant monies to cover fiscal year 2025 operating expenses. The Airport also has a strong contractual relationship with its airline partners and is renegotiating an updated airline agreement to incorporate the latest terminal square footage as well as updated methodologies for calculating rates and charges. The airline lease sets the precedent for the methodology used to establish rates and charges, including landing fees, apron fees, and terminal rental rates. This basic methodology is referred to as a residual calculation giving greater risk to the airlines, while providing a sustainable financial future for the airport. In future fiscal years, as was done in fiscal years 2011-2025, the Airport expects to employ a portion of its PFC revenues in its coverage calculations, consistent with current FAA regulations as to the use of these revenues. In fiscal year 2025, the City continued to hold Airport funds in segregated accounts and use such revenues only for Airport purposes, including reimbursing the City for shared services and for payroll, payables, and capital expenditure draws covered by the City on an interim basis, in accordance with FAA regulations. PFC revenues will continue to be deposited to a segregated PFC fund and used exclusively for projects approved for their use by the FAA, including the payment of debt service allocable to such projects. The City and the Airport are continuing to carefully review any opportunity to increase revenues and decrease expenses. The Airport continually evaluates smart ways to increase non-airline revenues to help balance rates and charges billed to the Airlines. All expiring leases are being viewed as opportunities to improve the facility and increase rental revenue. The Airport also is continuing to request reimbursement (through the PFC program) for certain local matching amounts that the City 12 Page 97 of 143 contributed to the FAA approved projects. The local AIP share was $3,070,762 in fiscal year 2025. Grants issued in fiscal year 2022 through 2025 are typically 90% federally funded and 10% local share match. It is the goal of these initiatives to (i) provide additional transparency in the handling of Airport funds; (ii) ensure timely and proactive responses to any unusual or unexpected financial events with respect to the Airport. Additionally, negotiated into the new airline agreement is the requirement that the airport debt coverage ratio will be 1.5X of debt service. The agreement allows the Airport to increase rates to meet this ratio. The debt covenant requirement of net revenues to be 1.25% of debt service. The airport was able to exceed the bond requirement, through fiscal year 2021. Due to refinanced debt mentioned above, the debt covenant calculation score was not applicable for fiscal year 2022 or 2023. In Fiscal year 2024, the debt coverage score was calculated. The calculation is shown below. For purposes of the Revenue bond calculation, federal Simulus grant funds are added to total operating revenues. However, the airline agreement excludes federal grant revenues from operating revenues, and therefore results in a 1.34 debt coverage score under that agreement. We believe this presentation tells our most accurate success story from fiscal years 2021 through 2025. From FY 2021 to 2025 (000s) 2021 2022 2023 2024 2025 Revenues $ 16,763 $ 21,371 $ 22,655 $ 23,784 $ 25,651 O&M Expenses (as defined) 12,943 14,625 16,559 18,088 19,398 Net Revenues (as defined) $ 3,820 $ 6,746 $ 6,096 $ 5,696 $ 6,253 PFC Revenues Available for DS $ 1,128 $ 948 $ 156 $ 1,005 $ 1,005 Funds Available for DS $ 4,948 $ 7,694 $ 6,252 $ 6,701 $ 7,258 25% PFC Revenue for DS coverage 282 237 39 251 251 Adjusted funds Available for DS $ 5,230 $ 7,931 $ 6,291 $ 6,952 $ 7,509 Debt Service $ 3,605 $ 546 $ 1,127 $ 3,721 $ 3,721 Debt Service Coverage 1.37 n/a n/a 1.80 1.95 Adjusted Debt Service Coverage 1.45 n/a n/a 1.87 2.02 The rate covenant calculation for fiscal year 2025 was 1.95. The rate covenant calculation for fiscal year 2023 was not applicable. Due to the bond refundings (2022 Series A) no principal payments were owed during the fiscal year. Only interest was incurred in fiscal year 2023. Principal and Interest payments resumed in fiscal year 2024. 13 Page 98 of 143 Liquidity The following table reflects changes to the Airport’s liquidity since fiscal year 2021: Liquidity Position (000s) Fiscal Year Ended June 30 Cash and Investment balances 2021 2022 2023 2024 2025 Unrestricted cash $ 3,342 $ 8,230 $ 9,991 $ 9,500 $ 11,367 O&M Reserve 4,532 4,931 5,447 5,531 5,618 Renewal and Replacement Reserve 200 200 200 200 200 1 PFCs 6,783 6,075 7,223 8,472 8,046 PFC Rolling Coverage 492 492 492 492 492 Debt Service Reserve Fund 3,840 3,386 3,358 3,396 3,417 2 Bond Debt Service Reserve 191 77 3,360 3,203 3,353 Total cash and investments $ 19,380 $ 23,391 $ 30,071 $ 30,794 $ 32,493 1 As a result of refunding during certain years, our debt service requirements decreased, thereby providing for an increase in our year-end PFC cash position. 2 Represents 1/6 Interest and 1/12 Principal Payments The current year increase in cash and investments of $0.7 million is primarily due to increases in the PFC account. Requests for Information This financial report is designed to provide a general overview of the Patrick Leahy Burlington International Airport’s finances for all those with an interest in the Airport’s finances. Questions concerning any of the information provided in this report or requests for additional financial infor- mation should be addressed to: Office of Clerk/Treasurer City of Burlington, City Hall 149 Church Street Burlington, VT 05401 14 Page 99 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT STATEMENT OF NET POSITION JUNE 30 2025 2024 Assets Current: Cash and cash equivalents $ 11,367,125 $ 9,500,497 Escrow 560,000 - Accounts receivable 1,991,615 1,544,625 Intergovernmental receivables 15,070,872 11,922,183 PFC receivables 492,246 498,226 Loan receivable, current portion 91,676 88,970 Inventory 365,983 418,100 Prepaid expenses 66,456 103,386 Leases receivable 2,657,422 2,733,140 Due from City of Burlington 200,000 - Total current assets 32,863,395 26,809,127 Noncurrent: Restricted cash 17,735,579 17,909,254 Restricted short-term investments for debt service reserve 3,390,620 3,384,134 Leases receivable, noncurrent portion 9,024,645 11,746,769 Receivable from the City of Burlington 317,500 - Loan receivable, noncurrent portion - 91,675 Land and construction in progress 114,553,754 89,722,366 Capital assets, net of accumulated depreciation/amortization 135,420,996 135,951,178 Total noncurrent assets 280,443,094 258,805,376 Total Assets 313,306,489 285,614,503 Deferred Outflows of Resources Pension related 650,798 829,103 OPEB related 99,060 148,021 Total Deferred Outflows of Resources 749,858 977,124 Total Assets and Deferred Outflows of Resources $ 314,056,347 $ 286,591,627 (continued) The accompanying notes are an integral part of these financial statements. 15 Page 100 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT STATEMENT OF NET POSITION JUNE 30 2025 2024 (continued) Liabilities, Deferred Inflows of Resources, and Net Position Liabilities Current: Accounts payable $ 12,298,858 $ 6,219,783 Retainage payable 3,000,957 969,847 Accrued liabilities 96,603 81,192 Accrued interest 444,826 504,411 Unearned revenue 173,627 262,119 Grant anticipation note - 1,005,305 Other liabilities 2,597 2,597 Current portion of: Revenue bonds payable 3,084,618 3,000,004 Leases payable 198,883 195,711 Equipment notes payable 465,871 464,543 Accrued employee compensated absences 313,734 350,751 Total current liabilities 20,080,574 13,056,263 Noncurrent: Revenue bonds payable, net of current portion 17,275,977 20,360,595 Leases payable, net of current portion 917,682 1,115,546 Equipment notes payable, net of current portion 946,354 897,732 Net pension liability 2,939,932 2,973,360 Total OPEB liability 252,262 276,606 Total noncurrent liabilities 22,332,207 25,623,839 Total Liabilities 42,412,781 38,680,102 Deferred Inflows of Resources Pension related 86,255 39,138 OPEB related 135,397 141,008 Lease related 11,242,754 14,157,660 Total Deferred Inflows of Resources 11,464,406 14,337,806 Net Position: Net investment in capital assets 212,443,758 192,124,116 Restricted 21,126,199 21,293,388 Unrestricted 26,609,203 20,156,215 Total Net Position 260,179,160 233,573,719 Total Liabilities, Deferred Inflows of Resources and Net Position $ 314,056,347 $ 286,591,627 The accompanying notes are an integral part of these financial statements. 16 Page 101 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT STATEMENT OF REVENUES, EXPENSES, AND CHANGE IN NET POSITION FOR THE YEARS ENDED JUNE 30 2025 2024 Operating Revenues Airline terminal revenues $ 2,701,815 $ 2,688,163 Landing fee revenues 2,349,878 1,864,116 Parking fees 7,775,858 7,145,883 Car rental concessions 3,737,231 3,667,965 Customer facility charges 2,191,920 2,127,686 Other revenues 5,041,660 5,465,300 Total Operating Revenues 23,798,362 22,959,113 Operating Expenses Personnel costs 6,516,023 5,845,913 Non-personnel costs 17,216,003 15,544,983 Depreciation and amortization 8,036,241 8,149,621 Total Operating Expenses 31,768,267 29,540,517 Operating Loss (7,969,905) (6,581,404) Nonoperating Income (Expenses) Nonoperating grants 498,063 467,882 CRSSA and ARPA grants 2,534,826 1,366,464 Investment income 454,718 579,593 Amortization of bond premium 230,004 273,323 Interest expense and fiscal charges (966,609) (1,082,126) Gain (loss) on sale of asset 97,710 103,926 Loss on lease termination - (291,334) Other income (expense) 99,314 202,546 Total Other Income (Expenses), net 2,948,026 1,620,274 Net Loss Before Capital Contributions (5,021,879) (4,961,130) Capital contributions Airport Improvement Program 28,767,663 13,163,060 Passenger facility charges 2,859,657 2,577,575 Change in Net Position 26,605,441 10,779,505 Net Position at Beginning of Year 233,573,719 222,794,214 Net Position at End of Year $ 260,179,160 $ 233,573,719 The accompanying notes are an integral part of these financial statements. 17 Page 102 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT STATEMENT OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2025 2024 Cash Flows From Operating Activities Receipts from customers and users $ 23,145,816 $ 22,184,226 Other receipts and reimbursements 99,314 202,546 Receipts of operating grants - 140,008 Payments to suppliers (17,148,387) (15,640,548) Payments for wages and benefits (6,326,629) (5,526,437) Net Cash Provided By (Used For) Operating Activities (229,886) 1,359,795 Cash Flows From Noncapital Financing Activities Nonoperating intergovernmental grants 498,063 467,882 CRSSA and ARPA grants 2,678,431 1,366,464 Receipts (payments) under interfund loan agreements (517,500) - Loan payments from Burlington Community Development Corporation 88,969 86,344 Net Cash Provided By Noncapital Financing Activities 2,747,963 1,920,690 Cash Flows From Capital and Related Financing Activities Acquisition and construction of capital assets (24,108,121) (11,233,975) Proceeds from equipment notes 560,000 - Capital grants 25,475,369 10,480,181 Passenger facility charges 2,865,637 2,575,553 Drawdowns on grant anticipation note - 1,005,305 Repayments of grant anticipation note (1,005,305) (1,401,866) Principal paid on revenue bonds (2,770,000) (2,655,000) Principal paid on leases (194,692) (193,579) Principal paid on equipment notes (510,050) (575,171) Interest paid on revenue bonds (949,238) (1,065,708) Interest paid on other debt (76,956) (73,303) Net Cash (Used For) Capital and Related Financing Activities (713,356) (3,137,563) Cash Flows From Investing Activities Investment income 454,718 579,593 Net Cash Provided By Investing Activities 454,718 579,593 Net Change in Cash and Short-Term Investments 2,259,439 722,515 Cash and Short-Term Investments, Beginning of Year 30,793,885 30,071,370 Cash and Short-Term Investments, End of Year $ 33,053,324 $ 30,793,885 The accompanying notes are an integral part of these financial statements. 18 Page 103 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 (continued) 2025 2024 Reconciliation of Operating Loss to Net Cash Used For Operating Activities: Operating loss $ (7,969,905) $ (6,581,404) Depreciation and amortization 8,036,241 8,149,621 Other income (expense) 99,314 202,546 Changes in assets, liabilities, and deferred outflows/inflows: Customer and concessions receivable (446,990) (407,639) Leases receivable 2,797,842 2,118,280 Inventory 52,117 (16,254) Prepaid expenses 36,930 11,656 Deferred outflows of resources 227,266 (113,790) Accounts payable (21,431) (90,967) Accrued liabilities 15,411 21,214 Unearned revenue (88,492) (431,004) Accrued employee compensated absences (37,017) 42,981 Net pension liability (33,428) 253,643 Total OPEB liability (24,344) 54,447 Deferred inflows of resources (2,873,400) (1,853,535) Net Cash Provided By (Used For) Operating Activities $ (229,886) $ 1,359,795 The accompanying notes are an integral part of these financial statements. 19 Page 104 of 143  PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT (An Enterprise Fund of the City of Burlington, Vermont) NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 and 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. The Financial Reporting Entity The Patrick Leahy Burlington International Airport (an enterprise fund of the City of Burlington, Vermont) (the Airport) is a municipally owned airport organized in 1920. The Airport is located in South Burlington, Vermont. The Airport operates as a department of the City of Burlington, Vermont (the City). As such, these financial statements are not intended to present the financial position and results of operations of the City of Burlington, Vermont, as a whole. The accounting policies of the Airport conform to accounting principles generally accepted in the United States of America, as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial reporting principles. The following is a summary of the more significant accounting policies. B. Basis of Presentation Enterprise funds are used to account for operations: (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation/amortization) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Based on the above definition, the Airport is accounted for utilizing enterprise fund accounting. C. Measurement Focus The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Proprietary fund financial statements are reported using the economic resources measurement focus. This means that all assets and liabilities associated with the operation of these funds (whether current or noncurrent) are included on the Balance Sheet (or Statement of Net Position). Fund equity (i.e., total net position) is segregated into net investment in capital assets, restricted net position, and unrestricted net position. Operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. 20 Page 105 of 143 D. Basis of Accounting Basis of accounting refers to when revenue and expenses are recognized and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The financial statements are prepared utilizing the accrual basis of accounting. Accord- ingly, revenues are recognized when earned and expenses are recognized when the related liability for goods and services are incurred regardless of the timing of the related cash flows. Operating revenues are defined as income received from the rent of terminal space and buildings, landing fees, concession commissions, and parking receipts. Nonoperating revenues are defined as income received from sources other than those defined above. Nonoperating revenues include investment income, passenger facility charges (PFC), grant income, building rents from buildings purchased for future expansion, and the sale of equipment. Operating expenses are defined as the ordinary costs and expenses of the Airport for opera- tions, maintenance, and repairs. Operating expenses include the costs of operating the Airport and related buildings as well as administrative and general expenses and depreciation and amortization. Operating expenses do not include the principal and interest on bonds, notes or other indebtedness, certain grant expenses, amortization of bond issue costs, or expenses related to the rental of buildings purchased for future expansion. E. Estimates The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. F. Cash and Short-Term Investments Deposits with financial institutions consist primarily of demand deposits and savings accounts. Cash recorded by the Airport is combined with cash of the City in determining amounts covered by Federal Deposit Insurance Corporation or by collateral held by the City’s banks. 21 Page 106 of 143  State and local statutes place certain limitations on the nature of deposits and investments available. Deposits in any financial institution may not exceed certain levels within the finan- cial institution. Investments can be made in securities issued by or unconditionally guaranteed by the U.S. government or its agencies that have a maturity of one year or less from the date of purchase and repurchase agreements guaranteed by such securities with maturity dates of no more than 90 days from the date of purchase. Short-term investments for the Airport consist of U.S. government securities which are carried at fair value. G. Receivables Receivables are shown net of an allowance for uncollectible accounts for the estimated losses that will be incurred in the collection of the receivables. The estimated losses are based on the judgment of management and a review of the current status of existing receivables. H. Leases The Airport is a lessor for noncancellable leases of buildings, land, and solar panels. The Airport recognizes a lease receivable and a deferred inflow of resources. At the commencement of a lease, the Airport initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The Airport uses its estimated incremental borrowing rate as the discount rate for leases if the rate is not available. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The Airport monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure lease receivables and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the leases receivable. I. Inventory Inventory quantities are determined by physical count and are valued at the lower of cost or market. Inventory at the Airport consists of maintenance supplies and parts. J. Capital Assets Capital assets include nondepreciable assets, such as construction in progress and land, and depreciable assets, such as land improvements, buildings and improvements, and machinery, vehicles, and equipment recorded at cost. Land includes all ancillary charges such as demo- lition costs. Equipment includes right to use assets reported in accordance with GASB Statement Number 87, Leases. Contributed assets are recorded at acquisition value at the time received. The cost of normal maintenance and repairs that do not add to the value of 22 Page 107 of 143  the asset or materially extend the asset’s life are not capitalized. The Airport’s capitalization policy considers two factors. Property will be capitalized when: 1. The combined cost to put a unit in service totals more than $10,000, (no threshold is applied to land and buildings). 2. The unit’s estimated life is greater than five years. The Airport follows the policy of charging to expenses annual amounts of depreciation and amortization which allocates the cost of plant and equipment over their estimated useful lives. The Airport employs the straight-line method for determining the annual charge for depreciation and amortization. The depreciable lives of capital assets are as follows: Depreciable Lives Land improvements 30 Years Buildings and improvements 25 - 150 Years Infrastructure 10 - 40 Years Machinery, equipment and vehicles 5 - 15 Years Right to use machinery and equipment 5 - 15 Years K. Long-Term Liabilities The Airport reports revenue bonds, leases, equipment notes, net pension liability and total OPEB liability as long-term liabilities. Bond premiums are deferred and amortized by the interest method; the unamortized balance is included within bonds payable. L. Net Position Net investment in capital assets consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of bonds, notes, leases or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position includes the following components: The debt service reserve account represents the lesser of: 1. the sum of 10% of the aggregate original net proceeds of each series of outstanding bond, 2. 125% of the average annual aggregate debt service on such bonds, or 3. the maximum aggregate amount of debt service due on such bonds in any succeeding bond year. 23 Page 108 of 143  The debt service fund is used to accumulate resources for the next scheduled principal and interest debt service payment for all prior issues. The “operations and maintenance reserve account” is kept at a level to fund three months of future operating expenses. The “renewal and replacement account” contains funds intended to meet unanticipated or emergency repairs. Passenger facility charges (PFCs) represent approximately $4.50 per passenger ticket collected by airline carriers and remitted to the Airport per enplaned passenger. PFC funds are restricted, to be used for financing eligible airport projects approved by the Federal Aviation Administration (FAA). Unrestricted net position is not specifically restricted for any project or other purpose. 2. DEPOSITS AND INVESTMENTS A. Custodial Credit Risk The custodial credit risk for deposits and investments is the risk that, in the event of bank or counterparty failure, deposits may not be returned or the value of investments or collateral securities that are in the possession of another party may not be recovered. The Airport’s cash and short-term investments include deposits, money market accounts, and securities with original maturities of one year or less. The deposits and money market accounts are fully collateralized. Investments in securities were held in the Airport’s name. B. Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. As of June 30, 2025 and 2024, the Airport’s investments in short-term U.S. Treasury notes of $3,390,620 and $3,384,134, had an implied credit rating of AAA. C. Concentration of Credit Risk Concentration of credit risk is the risk that an individual investment represents a significant concentration of the total portfolio. As of June 30, 2025 and 2024, the Airport had four and three U.S. Treasury notes and bills, respectively, which comprised 100% of the total short- term investments. D. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s policy limits 24 Page 109 of 143  maturities for investments in U.S. Treasury notes and bills and U.S. government agencies to 10 years. E. Fair Value The categorization of financial instruments within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the investments. The fair value of the Airport’s investment in short-term U.S. Treasury notes was determined based on “Level 2” inputs at June 30, 2025 and 2024. The valuation techniques used to measure the fair value of the “Level 2” instruments were valued based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. The Airport does not have any investments in the “Level 1” or “Level 3” category. There has been no change in valuation methodologies for 2025 and 2024 and no transfers between levels. 3. INTERGOVERNMENTAL RECEIVABLES The majority of this balance represents reimbursements requested from the Federal Aviation Administration’s Airport Improvement Program (AIP), and State Department of Transportation, for capital related expenditures incurred in fiscal years 2025 and 2024. Additional receivables represent other reimbursements from federal and local governments. The intergovernmental receivable consisted of the following at June 30: 2025 2024 Airport Improvement Projects: AIP 153 - partial funding for Project NexT $ 6,544,291 $ 2,528,399 AIP 122 - Reconstruct Apron 7 338 1,167,948 AIP 129, 141 - Sound Insulation RSIP 1,186,392 611,670 AIP 125 - Terminal Integration Project - 1,799,809 AIP-145 & 149 - Apron Grants 536,844 471,445 Taxiway Alpha Construction 256,298 256,298 Taxiway AIP Grants 4,689,980 2,592,512 Other AIP 1,277,597 1,771,365 Other Intergovernmental: CARES Act 579,132 722,737 Total $ 15,070,872 $ 11,922,183 25 Page 110 of 143 4. LOAN RECEIVABLE In 2006, the Airport issued a $1,400,000 note to Burlington Community Development Cor- poration (BCDC), a special revenue fund of the City, to assist in financing the construction of a new Airport support hanger. The terms of the note require monthly payments of $7,764 beginning in July 2006 for twenty years with interest at 3%. The note is due in June 2026. Future maturities are anticipated to be as follows: Fiscal Year Principal Interest Total 2026 $ 91,676 1,497 $ 93,173 5. RESTRICTED CASH The Airport holds the following restricted cash accounts: 2025 2024 Restricted for debt service and capital projects (PFC) $ 8,046,123 $ 8,471,997 Restricted for prepaid cash reserve (PFC) 491,892 491,892 Restricted for renewal and replacement reserve 200,013 200,013 Restricted for debt service reserve fund 25,926 12,100 Restricted for debt service 3,353,336 3,202,719 Restricted for operations and maintenance reserve 5,618,289 5,530,533 Total $ 17,735,579 $ 17,909,254 6. LEASES RECEIVABLE The Airport follows GASB Statement No. 87, Leases. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The Airport leases office, building, and ground space to various businesses (BETA, Heritage Building 890), car rental companies (Budget Rent-A-Car, Hertz Dollar, food and gift concessions (ELRAC, Hudson News), governmental agencies (GSA - National Weather Service) and others. The lease rates vary and are computed based upon square footage, percentages of gross revenues, and combinations of the two. As of June 30, 2025 and 2024, there are twenty four leases, respectively. These leases range in length from 2 to 30 years. As of June 30, 2025 and 2024, the value of the individual lease receivables ranged from $13,357 to $3,213,867 and $26,636 to $2,213,435, respectively. The range value of the deferred inflow of resources as of June 30, 2025 and 2024 was $18,456 to $3,128,791 and $26,420 to $2,172,501 respectively, and the Airport recognized lease revenues of $2,947,189 and $3,331,775 during the years ended June 30, 2025 and 2024, respectively. Regulated Leases 26 Page 111 of 143  The Airport leases office, building and ground space to various airlines. These leases are excluded from lease receivables and related deferred inflows per GASB Statement Number 87, as these are regulated leases. Lease revenue for the year ending June 30, 2025 and 2024 was $1,057,304 and $1,170,288, respectively. Airline agreements are renewed annually. Guaranteed payments for fiscal year 2026 are approximately $1,157,065. 7. PROPERTY, PLANT, AND EQUIPMENT Capital asset activity for the years ended June 30 was as follows: 2025 Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land $ 52,792,520 $ - $ - $ 52,792,520 Construction in progress 36,929,846 31,508,879 (6,677,491) 61,761,234 Total capital assets, not being depreciated 89,722,366 31,508,879 (6,677,491) 114,553,754 Capital assets, being depreciated/amortized: Land improvements 98,083,609 7,274,866 - 105,358,475 Buildings 28,703,903 - - 28,703,903 Building improvements 23,117,773 7,091 - 23,124,864 Infrastructure 96,395,313 - - 96,395,313 Machinery and equipment 14,160,565 224,102 (37,812) 14,346,855 Right to use machinery and equipment 1,887,417 - - 1,887,417 Vehicles 637,826 - - 637,826 Total capital assets, being depreciated/amortized 262,986,406 7,506,059 (37,812) 270,454,653 Less accumulated depreciation/amortization for: Land improvements (35,245,107) (2,336,666) - (37,581,773) Buildings (13,480,177) (563,305) - (14,043,482) Building improvements (867,743) (600,415) - (1,468,158) Infrastructure (66,899,760) (3,666,097) - (70,565,857) Machinery and equipment (9,792,509) (606,300) 36,812 (10,361,997) Right to use machinery and equipment (596,028) (198,676) - (794,704) Vehicles (153,904) (63,782) - (217,686) Total accumulated depreciation/amortization (127,035,228) (8,035,241) 36,812 (135,033,657) Total capital assets, being depreciated/amortized, net 135,951,178 (529,182) (1,000) 135,420,996 Total capital assets, net $ 225,673,544 $ 30,979,697 $ (6,678,491) $ 249,974,750 27 Page 112 of 143  2024 Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land $ 52,792,520 $ - $ - $ 52,792,520 Construction in progress 31,759,047 10,581,619 (5,410,820) 36,929,846 Total capital assets, not being depreciated 84,551,567 10,581,619 (5,410,820) 89,722,366 Capital assets, being depreciated: Land improvements 92,432,934 5,650,675 - 98,083,609 Buildings 29,353,903 - (650,000) 28,703,903 Building improvements 18,920,153 4,197,620 - 23,117,773 Infrastructure 96,395,313 - - 96,395,313 Machinery and equipment 14,334,124 91,873 (265,432) 14,160,565 Right to use machinery and equipment 1,887,417 - - 1,887,417 Vehicles 319,360 318,466 - 637,826 Total capital assets, being depreciated 253,643,204 10,258,634 (915,432) 262,986,406 Less accumulated depreciation/amortization for: Land improvements (33,047,335) (2,197,772) - (35,245,107) Buildings (13,180,489) (583,602) 283,914 (13,480,177) Building improvements (372,270) (495,473) - (867,743) Infrastructure (63,057,122) (3,842,638) - (66,899,760) Machinery and equipment (9,225,098) (799,525) 232,114 (9,792,509) Right to use machinery and equipment (397,352) (198,676) - (596,028) Vehicles (121,968) (31,936) - (153,904) Total accumulated depreciation/amortization (119,401,634) (8,149,622) 516,028 (127,035,228) Total capital assets, being depreciated/amortized, net 134,241,570 2,109,012 (399,404) 135,951,178 Total capital assets, net $ 218,793,137 $ 12,690,631 $ (5,810,224) $ 225,673,544 8. SHORT-TERM DEBT The Airport uses a capital improvement project grant anticipation note (GAN) to finance airport improvement projects prior to grant reimbursement from the Federal Aviation Administration and the State Department of Transportation. The Airport renewed the GAN on June 30, 2025 for $10,000,000 at secured overnight financing rate (SOFR) collateralized by grant receivables. Available line of credit was $10,000,000 and $8,994,695 at June 30, 2025 and 2024, respectively. GAN activity for the years ended June 30, 2025 and 2024 was as follows: Balance at Balance at Description 7/1/24 Draws Repayments 6/30/25 Grant Anticipation Note $ 1,005,305 $ - $ (1,005,305) $ - Balance at Balance at Description 7/1/23 Draws Repayments 6/30/24 Grant Anticipation Note $ 1,401,866 $ 1,005,305 $ (1,401,866) $ 1,005,305 28 Page 113 of 143 9. LONG-TERM DEBT Revenue Bonds (public offerings) - The Airport issues bonds where the City pledges income to pay the debt service. Revenue bonds outstanding at June 30 were as follows: 2025 Original Serial Serial Issue Maturities Maturities Interest Amount Description Amount Begin Through Rates Outstanding Revenue Refunding Bond 2022 Series A $ 10,635,000 6/30/2024 6/30/2029 4.00 - 5.00% $ 7,415,000 Revenue Refunding Bond 2021 Series A $ 5,175,000 7/1/2023 7/1/2030 1.20 - 3.00% 5,010,000 Revenue Refunding Bond 2014 Series A $ 15,660,000 7/1/2015 7/1/2030 4.00 - 5.00% 7,475,000 Total $ 19,900,000 2024 Amount Original Serial Serial Outstanding Issue Maturities Maturities Interest as of Description Amount Begin Through Rates 06/30/24 Revenue Refunding Bond 2022 Series A $ 10,635,000 6/30/2024 6/30/2029 4.00 - 5.00% $ 9,060,000 Revenue Refunding Bond 2021 Series A $ 5,175,000 7/1/2023 7/1/2030 1.20 - 3.00% 5,090,000 Revenue Refunding Bond 2014 Series A $ 15,660,000 7/1/2015 7/1/2030 4.00 - 5.00% 8,520,000 Total $ 22,670,000 Maturities are as follows: Public Offering Revenue Bonds Fiscal Year Principal Interest Total 2026 $ 2,900,000 $ 818,433 $ 3,718,433 2027 3,045,000 672,384 3,717,384 2028 3,200,000 518,748 3,718,748 2029 3,365,000 357,075 3,722,075 2030 3,625,000 207,630 3,832,630 2031 - 2035 3,765,000 70,525 3,835,525 $ 19,900,000 $ 2,644,794 $ 22,544,794 Unamortized Premium - Debt premiums in connection with the sale of bonds are amortized over the terms of the related debt. Unamortized balances are included as a component of long-term debt. 29 Page 114 of 143 Changes in long-term debt and other obligations were as follows for the year ended June 30: 2025 Equals Total Total Less Long Balance Balance Current Term 7/1/24 Additions Reductions 6/30/25 Portion Portion Revenue refunding bond 2014 series A 8,520,000 - (1,045,000) 7,475,000 (1,100,000) 6,375,000 Revenue refunding bond 2021 series A 5,090,000 - (80,000) 5,010,000 (80,000) 4,930,000 Revenue refunding bond 2022 series A 9,060,000 - (1,645,000) 7,415,000 (1,720,000) 5,695,000 Total revenue bonds payable 22,670,000 - (2,770,000) 19,900,000 (2,900,000) 17,000,000 Add: unamortized premium 690,599 - (230,004) 460,595 (184,618) 275,977 Subtotal 23,360,599 - (3,000,004) 20,360,595 (3,084,618) 17,275,977 Leases payable 1,311,257 - (194,692) 1,116,565 (198,883) 917,682 Equipment notes payable 1,362,275 560,000 (510,050) 1,412,225 (465,871) 946,354 Net pension liability 2,973,360 - (33,428) 2,939,932 - 2,939,932 Total OPEB liability 276,606 - (24,344) 252,262 - 252,262 Compensated absences 350,751 - (37,017) 313,734 (313,734) - Total $ 29,634,848 $ 560,000 $ (3,799,535) $ 26,395,313 $ (4,063,106) $ 22,332,207 The revenue bonds were issued pursuant to general bond resolutions and are secured by a pledge of net Airport revenues. Pursuant to the general bond resolutions, revenues mean all rates, fees, charges, or other income and includes rentals, proceeds of insurance or condemnation or other disposition of assets, proceeds of bonds or notes, and earnings from the investment of revenues. On an annual basis, revenues must be sufficient after deducting operating expenses, to meet min- imum debt service coverage requirements of 1.25. Revenues for this purpose represent all rates, charges, rents and other income, including PFC revenues available for debt service. Operating expenses represent O&M (operation and maintenance), excluding depreciation. Certain other exclusions apply. City’s Bond Counsel has determined that the effect of GASB 68 and 75 on pension and OPEB expense is excludable from O&M and, therefore, not included in determining net revenues available for debt service. In fiscal year 2025 and 2024, the Airport recognized $2,534,826 and $1,366,464 in CRRSA and ARPA grant revenue respectively, that was used 100% to cover operating expenses. If minimum debt service coverage requirements are not met, the Airport must take timely corrective action. The Airport debt coverage ratio for fiscal years 2025 and were 1.95 and 2.02 respectively. 30 Page 115 of 143  Equipment Financing Notes – The Airport had the following equipment notes outstanding at June 30: 2025 2024 Airport equipment - payments total to $74,486 annually, including $ 72,568 $ 143,266 interestg at 2.77%, maturing on August y 10,(2025. ) p y $193,411 annually, including interest at 2.37%, maturing on March 2, - 80,546 2024. Airport equipment - payments total to $345,015 annually, including 825,162 1,138,463 interest at 2.99%, maturing on September 18, 2027. John Deere 844P Wheel Loader - payments total to $45,506 annually, 514,495 - including interest at 4.11%, maturing on December 23, 2031. Total equipment notes outstanding $ 1,412,225 $ 1,362,275 Maturities are as follows: Fiscal Year Principal Interest Total 2026 $ 465,871 $ 44,644 $ 510,515 2027 405,958 30,069 436,027 2028 246,522 17,000 263,522 2029 79,735 11,278 91,013 2030 83,049 7,964 91,013 2031 86,500 4,512 91,012 2032 44,590 917 45,507 Total $ 1,412,225 $ 116,384 $ 1,528,609 10. RESTRICTED NET POSITION Restricted net position was comprised of the following at June 30: 2025 2024 Restricted for debt service and capital projects (PFC) $ 8,046,123 $ 8,471,997 Restricted for prepaid cash reserve (PFC) 491,892 491,892 Restricted for renewal and replacement reserve 200,013 200,013 Restricted for debt service reserve fund 3,416,547 3,396,234 Restricted for debt service 3,353,336 3,202,719 Restricted for operations and maintenance reserve 5,618,288 5,530,533 Total $ 21,126,199 $ 21,293,388 31 Page 116 of 143  As of June 30, 2025 and 2024, the restricted PFC cash above of $8,538,014 ($8,046,123 and $491,892) and $8,963,889 ($8,471,997 and $491,892), respectively, in addition to the PFC amount included in the debt service reserve above of $911,848 and $892,872, respectively, for a total of $9,449,862 and $9,856,731, respectively, is presented in the Schedule of Passenger Facility Charges Collected and Expended, following these financial statements. 11. RETIREMENT BENEFITS AND RESULTING NET PENSION LIABILITY Defined Benefit Plan: All full-time employees of the Airport participate in the City of Burlington Employees’ Retirement System (the Plan), a cost sharing, single employer defined benefit plan. The Airport follows the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, with respect to the Plan. Plan Description: Substantially all employees of the Airport are members of the Plan and are classified as Class B members. Eligible employees must participate in the Plan. The City Council has the authority to amend the benefit terms of the Plan by enacting ordinances and sending them to the Mayor for approval. The Plan membership for the City includes 894 inactive plan members or beneficiaries currently receiving benefits, 807 inactive plan members entitled to but not yet receiving benefits, and 922 active plan members. The Airport reports a net pension liability for its proportionate share of the City’s total net pension liability per GASB 68. The net pension liability was measured as of June 30, 2024. At June 30, 2025 and 2024, the Airport’s proportion was 2.45% and 2.41%, respectively. For more information on the City’s plan, see the City of Burlington, Vermont’s Annual Comprehensive Financial Report. Benefits Provided: Class B retirees who have attained the age of 55 or older and completed 5 or more years of creditable service (age and years of creditable service vary depending on agree- ments) are eligible for benefits based on average final earnable compensation (AFC) during either the highest 5 or 3 non-overlapping 12-months periods depending on hiring dates. For details on agreements and AFC, see the City of Burlington, Vermont’s Comprehensive Annual Financial Report. Contributions: The Airport contributed $346,014 and $307,241 for the fiscal year ending June 30, 2025 and 2024. The Plan uses the direct rate smooth method for funding. The Airport’s contributions were based on full time equivalents and wages. Employer and employee contribution rates are governed by the respective collective bargaining agreements. The employer and plan members share the cost of benefits. For the years ending June 30, 2025 and 2024, the Plan members contribute 4.34% and 3.85% of their base pay, respectively. Summary of Significant Accounting Policies: For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pension, and pension expense, information about the fiduciary net position of the Plan was used as reported on the City of Burlington, Vermont’s Comprehensive Annual Financial Report. For this purpose, 32 Page 117 of 143 benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. Actuarial assumptions: The net pension liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.70% Salary increases 3.10% per year Investment rate of return 7.10 percent, net of pension plan investment expense, including inflation Mortality rates for the current year were based on the Pub-2010 Public Retirement Plans Amount- Weighted Mortality Tables, projected to the valuation date with Scale MP-2021. For Class B (General Employees), rates for retirees, non-annuitants, and annuitants were set forward 2 years; disabled retiree rates were set forward 3 years; and survivor rates were set forward 3 years, using the respective Pub-2010 tables for General Employees, Disabled Retirees, and Contingent Survivors. The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experience study for the period of July 1, 2017 through June 30, 2022. The long-term expected rate of return on pension plan investments was selected from a best estimate range determined using the building block approach. Under this method, an expected future real return range is calculated separately for each asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return net of investment expenses by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major class as of June 30, 2024 are summarized in the following table: Long-Term Expected Target Real Rate Asset Class Allocation of Return Core Fixed Income 20.00% 5.90% US Bonds - Dynamic 7.00% 6.80% U.S. Large Cap Equity 33.00% 7.30% U.S. Small Cap Equity 9.50% 6.80% International Developed Equity 19.00% 8.20% International Emerging Markets Equity 7.00% 10.10% Private Equity 0.50% 10.30% Real Estate 4.00% 7.80% Long-term Return Assumption 100.00% 33 Page 118 of 143 Discount Rate: The discount rate used to measure the net pension liability was 7.10%. The pro- jection of cash flows used to determine the discount rate assumed that the plan member con- tributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the fiduciary net position was projected to be available to make all future benefit payments to the current plan 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. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the Airport’s proportionate share of the net pension liability calcu- lated using the discount rate, as well as what the Airport’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current rate: 1% Decrease Discount Rate 1% Increase Fund's net pension liability as of: (6.10%) (7.10%) (8.10%) June 30, 2025 $ 4,026,232 $ 2,939,932 $ 2,034,762 June 30, 2024 $ 3,963,423 $ 2,973,360 $ 2,145,882 Pension Expense and Deferred Outflows and Inflows of Resources: For the years ending June 30, 2025 and 2024, the Airport recognized pension expense of $538,008 and $530,536. Deferred outflows and inflows or resources consist of the following: Deferred Deferred Outflows of Inflows of Resources Resources Deferred pension contributions $ 346,014 $ - Changes in proportional share of contributions 65,175 10,942 Difference between expected and actual pension experience 213,555 - Changes in assumptions 26,054 - Difference between projected and actual investment earnings - 75,313 Total $ 650,798 $ 86,255 Deferred outflows of resources related to pension resulting from contributions subsequent to the measurement date will be recognized in pension expense in the subsequent fiscal year. 34 Page 119 of 143  Other amounts reported as deferred outflows and inflows of resources related to pension are recognized in pension expense (benefit) in future fiscal years as follows: Amortization Year Amount 2026 $ 135,149 2027 239,525 2026 (94,152) 2027 (61,993) $ 218,529 Pension Plan Fiduciary Net Position: Detailed information about the Plan’s fiduciary net position is available in the separately issued City of Burlington, Vermont’s Annual Comprehensive Financial Report. No separate stand-alone report is issued for the Plan. 12. OTHER POST-EMPLOYMENT BENEFITS (OTHER THAN PENSION) – OPEB GASB 75 GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, replaces the requirements of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expenses. This Statement identifies the methods and assumptions that are required to be used to project benefit payments, discounted projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. General Information about the OPEB Plan Plan Description In addition to providing the pension benefits described, the City provides postemployment healthcare and life insurance benefits for retired employees through the City’s plan. The Plan membership for the City includes 455 inactive plan members or beneficiaries currently receiving benefits, 29 inactive plan members entitled to but not yet receiving benefits, and 666 active plan members. The City allows certain retired employees to purchase health insurance through the City at the City’s group rates. GASB No. 75 recognizes this as an implied subsidy and requires accrual of this liability. Benefits Provided The City provides medical, prescription drug, mental health/substance abuse and life insurance to retirees and their covered dependents. All active employees who retire from the City and meet the eligibility criteria may receive these benefits. 35 Page 120 of 143 Funding Policy The OPEB Plan’s funding policy is to contribute the employer portion of retiree benefit payments annually. Contributions Employer and employee contribution rates are governed by the respective collective bargaining agreements. The OPEB plan is currently funded on a pay-as-you-go basis. The employer and plan members share the cost of benefits. The plan members contribute 6.11% and 6.24% of the monthly premium cost for the years ending June 30, 2025 and 2024, respectively, depending on the plan in which they are enrolled. The Airport contributes the balance of the premium costs. Actuarial Assumptions and Other Inputs The total OPEB liability was determined by an actuarial valuation as of July 1, 2023, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.7 percent Salary increases Varies, ultimately 2.7 percent Discount rate 5.20 percent (prior 3.93 percent) Healthcare cost trend rates 7.0 percent, reducing by 0.2 percent each year to an ultimate rate of 4.7 percent per year rate for 2035 and later. Participation rate 20% of eligible active members will elect medical coverage at retirement. Retirees' share of benefit-related costs Retirees are responsible for a portion of premium rates not covered by the City. The actuarial assumptions used in the valuation were based on the results of an actuarial experience study for the period of July 1, 2017 through June 30, 2022. Discount Rate The discount rate used to measure the total OPEB liability was 5.20% and 3.93% for the year ending June 30, 2025 and 2024, respectively. Since the OPEB plan is not funded, the selection of the discount rate is consistent with the GASB 75 standards linking the discount rate to the 20-year AA municipal bond index for unfunded OPEB plans. The discount rate used for the valuation is equal to the published Bond Buyer general obligation 20-year-Bond Municipal Index effective as of June 30, 2025 and 2024. Total OPEB liability The Airport’s total OPEB liability was measured as of June 30, 2025 and was determined by an actuarial valuation as of July 1, 2023. 36 Page 121 of 143 Changes in the Total OPEB Liability Detailed information about the changes in total OPEB liability is available in the separately issued City of Burlington, Vermont’s Annual Comprehensive Financial Report. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage-point lower or one percentage- point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (4.20%/2.93%) (5.20%/3.93%) (6.20%/4.93%) June 30, 2025 $283,652 $252,262 $225,661 June 30, 2024 $313,464 $276,606 $245,686 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, as well as what the total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage-point lower or one percentage-point higher than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (6.0%/5.5% (7.0%/6.5% (8.0%/7.5% decreasing to decreasing to decreasing to 3.7%/3.6%) 4.7%/4.6%) 5.7%/5.6%) June 30, 2025 $228,913 $252,262 $280,464 June 30, 2024 $252,361 $276,606 $305,905 OPEB Expense and Related Deferred Outflows and Inflows of Resources For the year ended June 30, 2025, the Airport recognized an OPEB expense of $29,592. At June 30, 2025, deferred outflows and inflows or resources consisted of the following: Deferred Deferred Outflows of Inflows of Resources Resources Changes in proportional share of contributions $ 91,914 - Difference between expected and actual pension experience - 76,736 Changes in assumptions 7,146 58,661 Total $ 99,060 $ 135,397 37 Page 122 of 143  The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense (benefit) as follows: Amortization Year Amount 2026 $ (5,795) 2027 (21,772) 2027 (604) 2028 2,295 2029 (9,064) Thereafter (1,397) $ (36,337) 13. DEFERRED COMPENSATION PLAN The Airport offers its employees a deferred compensation plan (DCP) administered through the City in accordance with Section 457 of the Internal Revenue Code (IRC). The DCP permits employees to defer a portion of their salary until future years. The deferred compensation is not available to the employees until termination, retirement, death, or for “unforeseeable emergency” as defined by the IRC. Investments of the DCP are self-directed by employees. 14. RELATED PARTY TRANSACTIONS The City Clerk/Treasurer’s office charges all departments for administration and risk manage- ment fees. The City Council approves, through the budget process, the annual assessments. For the years ending June 30, 2025 and 2024, administrative and risk management fees paid to the City General Fund were $664,499 and $618,109 respectively. The Airport contracted with other City departments to provide services. Security from the Police Department was $1,268,854 and $1,113,024 for fiscal years 2025 and 2024, respectively. 15. COMMITMENTS AND CONTINGENCIES Grants - Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time, although the Airport expects such amounts, if any, to be immaterial. Construction Commitments – The Airport has a number of ongoing Airport Improvement Pro- gram (AIP) projects for construction and land acquisition, as well as several Passenger Facility Program (PFC) projects for terminal improvements that are funded from restricted assets. AIP 38 Page 123 of 143  projects include taxiway and apron reconstruction, master plan and noise compatibility program planning grants, and building demolition related to previously acquired property and land acqui- sition. The PFC projects include energy projects, cargo apron reconstruction, escalator and baggage carousel projects and related work. 16. RISK MANAGEMENT The Airport is exposed to various risks of loss related to torts; theft of, damage to and destruc- tion of assets; errors and omissions; injuries to employee; and natural disasters. The Airport manages these risks through a combination of commercial insurance packages and through the City’s risk management program. The City carries commercial insurance to cover its property, casualty, and general liability risks. Commercial property insurance, inland marine, and employment practices insurance coverage is provided by Travelers Indemnity Company and is offered on a guaranteed cost basis with a deductible of $50,000. The City has a large-deductible workers’ compensation plan with Travelers Indemnity Company. The Airport also carries airport owners and operators’ general liability insurance with the following limits: Completed Operations Aggregate $100 million Personal Injury and Advertising Injury Aggregate $50 million Malpractice Aggregate $50 million Each occurrence limit $100 million Fire Damage – any one fire $500,000 Medical Expenses – any one person $10,000 Hangarkeepers Limit – any one aircraft $100 million Hangarkeepers Limit – any one occurrence $100 million For health and dental insurance, the City self-insures with appropriate stop-loss coverage in place to cover large claims. The stop-loss limits are as follows: Health insurance $130,000 per occurrence with no stop loss coverage Dental insurance The benefit from this coverage cannot exceed $1,500 per participant All of the City’s self-insurance programs are administered by a third-party administrator, which processes and pays the claims and then bills the City for the amount of the total claims paid. 39 Page 124 of 143  The costs associated with these self-insurance plans are budgeted in the City’s Internal Service Fund. Airport contributed $1,418,269 and $1,105,339 to these programs for the fiscal years ended June 30, 2025 and 2024. The contributions were allocated based on the following: Type Allocation Method Workers' compensation 50% Experience and 50% Exposure Health Number of employees and levels of coverage Dental Actual claims and administrative fees paid Liability Adjusted operating budgets Property Insured value of city structures The City has elected to pay actual unemployment claims instead of enrolling in an unem- ployment insurance program. There were no new unemployment claims in the years ending June 30, 2025 and 2024. 17. MAJOR CUSTOMERS A significant portion of the Airport’s earnings and revenues are directly or indirectly attributed to the activity of a few major airlines. The Airport’s earnings and revenues could be materially and adversely affected should these major airlines discontinue operations, and should the Airport be unable to replace the airline with similar activity. The level of operations is determined based upon the relative share of enplaned passengers. The following represents major concentrations and their respective airline passenger shares: American 31.8% United 34.9% Delta 25.3% 18. SUBSEQUENT EVENTS Management has evaluated subsequent events though February 23, 2026, which is the date the financial statements were available to be issued. 19. NEW ACCOUNTING PRONOUNCEMENTS The following Governmental Accounting Standards Board (GASB) pronouncements will be implemented in the future, as applicable: • The GASB issued Statement No. 103, Financial Reporting Model Improvements, which is required to be implemented in fiscal year 2026. 40 Page 125 of 143  • The GASB issued Statement No. 104, Disclosure of Certain Capital Assets, which is required to be implemented in fiscal year 2026. • The GASB issued Statement No. 105, Subsequent Events, which is required to be implemented in fiscal year 2027. Management is currently assessing the impact the implementation of these pronouncements will have on the basic financial statements. 41 Page 126 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2025 (Unaudited) Burlington Employees' Retirement System Proportion Proportionate of the Share of the Proportionate Share of the Plan Fiduciary Net Position Fiscal Measurement Net Pension Net Pension Net Pension Liability as a Percentage of the Total Year Date Liability Liability Covered Payroll Percentage of Covered Payroll Pension Liability June 30, 2025 June 30, 2024 2.45% $2,939,932 $ 3,384,413 86.87% 67.11% June 30, 2024 June 30, 2023 2.41% $2,973,360 $ 2,659,239 111.81% 64.41% June 30, 2023 June 30, 2022 2.34% $2,719,717 $ 2,615,031 104.00% 64.28% June 30, 2022 June 30, 2021 2.40% $1,482,310 $ 2,606,931 56.86% 81.10% June 30, 2021 June 30, 2020 2.40% $2,363,918 $ 2,656,886 88.97% 66.37% June 30, 2020 June 30, 2019 2.20% $1,834,449 $ 2,538,239 72.27% 70.00% June 30, 2019 June 30, 2018 2.14% $1,623,323 $ 2,375,629 68.33% 71.41% June 30, 2018 June 30, 2017 1.87% $1,630,284 $ 1,899,810 85.81% 66.77% June 30, 2017 June 30, 2016 2.95% $2,631,042 $ 1,795,630 146.52% 63.75% June 30, 2016 June 30, 2015 3.18% $2,169,468 $ 1,664,402 130.35% 70.35% See Independent Auditors’ Report. 42 Page 127 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT SCHEDULE OF PENSION CONTRIBUTIONS REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2025 (Unaudited) Burlington Employees' Retirement System Contributions in Relation to the Contractually Contractually Contribution Contributions as Fiscal Required Required Deficiency Covered a Percentage of Year Contribution Contribution (Excess) Payroll Covered Payroll June 30, 2025 $ 346,014 $ (346,014) $ - $ 3,555,654 9.73% June 30, 2024 $ 307,241 $ (307,241) $ - $ 3,384,413 9.08% June 30, 2023 $ 237,931 $ (237,931) $ - $ 2,659,239 8.95% June 30, 2022 $ 263,244 $ (263,244) $ - $ 2,615,031 10.07% June 30, 2021 $ 248,981 $ (248,981) $ - $ 2,606,931 9.55% June 30, 2020 $ 238,269 $ (238,269) $ - $ 2,656,886 8.97% June 30, 2019 $ 216,312 $ (216,312) $ - $ 2,538,239 8.52% June 30, 2018 $ 203,967 $ (203,967) $ - $ 2,375,629 8.59% June 30, 2017 $ 254,514 $ (254,514) $ - $ 1,899,810 13.40% June 30, 2016 $ 270,003 $ (270,003) $ - $ 1,795,630 15.04% See Independent Auditors’ Report. 43 Page 128 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT SCHEDULE OF PROPORTIONATE SHARE OF THE TOTAL OPEB LIABILITY REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) City OPEB plan Total OPEB Liability Proportion of the Total Proportionate Share of the Covered as a Percentage of Fiscal Year Measurement Date OPEB Liability Total OPEB Liability Payroll Covered Payroll June 30, 2025 June 30, 2025 5.59% $252,262 $2,588,447 9.75% June 30, 2024 June 30, 2024 5.59% $276,606 $2,520,396 10.97% June 30, 2023 June 30, 2023 3.93% $222,159 $2,433,238 9.13% June 30, 2022 June 30, 2022 3.93% $213,927 $2,371,577 9.02% June 30, 2021 June 30, 2021 3.91% $271,015 $2,362,236 11.47% June 30, 2020 June 30, 2020 3.91% $257,184 $2,302,374 11.17% June 30, 2019 June 30, 2019 2.10% $112,007 $1,642,196 6.82% June 30, 2018 June 30, 2018 2.10% $104,692 $1,600,581 6.54% Schedules are intended to show information for 10 years. Additional years will be displayed as they become available. See Independent Auditors’ Report. 44 Page 129 of 143  CBIZ CPAs P.C. 9 Executive Park Drive Suite 100 Merrimack, NH 03054 P: 603.882.1111 Independent Auditors’ Report on Compliance with Requirements of the Passenger Facility Charge Program; Report on Internal Control over Compliance; and Report on the Schedule of Passenger Facility Charges Required by the Federal Aviation Administration Passenger Facility Charge Branch To the Honorable Mayor, City Council and Burlington Airport Commission City of Burlington, Vermont Opinion on the Passenger Facility Charge Program We have audited the Patrick Leahy Burlington International Airport (an enterprise fund of the City of Burlington, Vermont) (the Airport), for compliance with the types of compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies (the Guide) issued by the Federal Aviation Administration Passenger Facility Charge Branch, applicable to its Passenger Facility Charge Program that could have a direct and material effect on the Airport’s passenger facility charge program for the year ended June 30, 2025. Our responsibility is to express an opinion the Airport’s compliance based on our audit procedures. In our opinion, the Airport complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the Passenger Facility Charge program for the year ended June 30, 2025. Basis for Opinion on the Passenger Facility Charge Program We conducted our audit 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, and the requirements of the Federal Aviation Administration, Passenger Facility Branch (FAA). Our responsibilities under those standards and the FAA are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Airport and to meet our other ethical responsibilities, in accordance with the 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 the Airport’s passenger facility charge program. Our audit does not provide a legal determination of the Airport’s compliance with the compliance requirements referred to above. CBIZCPAS.COM 45 Page 130 of 143 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, regulations, contracts, and grants applicable to the passenger facility charge program. Auditors’ 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 to issue an opinion on the Airport’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 FAA will always detect a material noncompliance when it exists. The risk of not detecting material noncompliance 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. 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 Airport’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 FAA, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • 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. • 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 Airport’s internal control. 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, 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 the passenger facility charge 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 the passenger facility charge 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 the passenger facility charge 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. 46 Page 131 of 143 Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses and significant deficiencies may exist that have not been 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. Purpose of This Report 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 FAA’s Passenger Facility Charge Audit Guide for Public Agencies. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Passenger Facility Charges Required by the Federal Aviation Administration, Passenger Facility Charge Branch We have audited the financial statements of the Patrick Leahy Burlington International Airport (an enterprise fund of the City of Burlington, Vermont) (the Airport), as of and for the year ended June 30, 2025, and have issued our report thereon dated February 23, 2026, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Airport’s basic financial statements. The accompanying Schedule of Passenger Facility Charges is presented for purposes of additional analysis as required by the Passenger Facility Charge Audit Guide for Public Agencies issued by the Federal Aviation Administration, Passenger Facility Charge Branch and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 Passenger Facility Charges is fairly stated in all material respects in relation to the basic financial statements as a whole. CBIZ CPAs P.C Merrimack, NH February 23, 2026 47 Page 132 of 143  CITY OF BURLINGTON, VERMONT PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT SCHEDULE OF PASSENGER FACILITY CHARGES FOR THE YEAR ENDED JUNE 30, 2025 Cash balance - July 1, 2024 $ 9,856,761 Receipts Passenger facility charges collected 2,865,637 Interest earnings 24,652 Total receipts 2,890,289 Disbursements Project No. 96-01-I-00-BTV (140,138) Project No. 00-03-C-00-BTV (56,280) Project No. 10-04-C-00-BTV (515,572) Project No. 20-07-C-00-BTV (292,519) Project No. 22-08-C-00-BTV (74,487) Project No. 25-09-C-00-BTV (2,218,192) Total disbursements (3,297,188) Decrease in cash balance (406,899) Cash balance - June 30, 2025 $ 9,449,862 See Note 10 for reconciliation of above cash to the restricted accounts presented in the financial statements. 48 Page 133 of 143  PATRICK LEAHY BURLINGTON INTERNATIONAL AIRPORT Schedule of Findings and Questioned Costs For the Year Ended June 30, 2025 I. Summary of Auditors’ Results Financial Statements Type of Auditors’ report issued: Unmodified Internal Control over Financial Reporting: • Material weaknesses identified? Yes  No • Significant deficiencies identified? Yes  None reported Noncompliance material to financial statements noted? Yes  No Passenger Facility Charge Program Internal Control over the Passenger Facility Charge Program: • Material weaknesses identified? Yes  No • Significant deficiencies identified? Yes  None reported Type of Auditors’ report issued on compliance: Unmodified • Any audit findings disclosed that are required to be reported in accordance with the Passenger Facility Charges Audit Guide for Public Agencies? Yes  No II. Financial Statement Findings None reported. III. Findings and Questioned Costs None reported. 49 Page 134 of 143 2025 Patrick Leahy Burlington International Airport March 4, 2 0 2 6 Airport Commission Director’s Report 1 Page 135 of 143 2026 Project NexT 2 Page 136 of 143 2026 Staff Appreciation Lunch 3 Page 137 of 143 2026 Snow Operations 3 Page 138 of 143 2026 Events & Items • Current Items: • Transportation Network Companies (TNC) Updates • Snow Removal Equipment (SRE) Updates • Project NexT Timeline • Parking Garage • Conferences: • NEC Airports Conference, March 2026 • Snow Symposium, April 2026 4 Page 139 of 143 2026 Snow Removal Equipment Building 5 Page 140 of 143 2026 Scheduled Departures; Projections 1,600 2026 2025 2024 2019 2008 1,400 JAN 713 730 542 910 1,170 FEB 669 656 541 851 1,121 1,200 MAR 757 808 613 970 1,214 APR 833 815 654 991 1,241 1,000 MAY 916 846 717 944 1,305 800 JUN 983 887 854 1,071 1,351 JUL 1,047 930 901 1,127 1,429 600 AUG 1,059 909 946 1,122 1,391 SEP 1,012 852 970 1,067 1,295 400 OCT 1,081 996 1,015 1,038 1,324 200 NOV 800 719 741 942 1,165 DEC 794 711 758 962 1,232 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 10,664 9,859 9,341 11,995 15,238 2026 2025 2024 2019 2008 6 Page 141 of 143 2026 Scheduled Seats; Past & Projections Total Annual Seats and Load Factor: 2008 = 1,051,115 @ 74.6% 2019 = 858,589 @ 82.7% 120,000 2026 2025 2024 2019 2008 2022 = 804,380 @ 79.94% 2023 = 774,095 @ 86.7%* 2024 = 850,699 @ 81.18% JAN 59,302 69,073 50,245 63,905 77,163 110,000 2025 = 889,168 @ 80.8% *Highest in recorded history since 1990 FEB 60,078 60,958 48,066 60,240 73,873 100,000 MAR 67,258 74,030 52,577 68,428 78,540 APR 68,117 72,724 53,671 66,566 81,040 90,000 MAY 80,461 71,276 64,163 67,379 88,905 80,000 JUNE 85,226 77,239 78,672 78,828 100,488 70,000 JULY 92,828 86,108 86,352 84,658 94,329 AUG 94,491 84,106 92,765 83,786 98,916 60,000 SEPT 88,534 80,415 92,016 76,194 91,407 50,000 OCT 91,355 91,292 94,651 75,193 93,590 Average # Seats per Flight: 2008 = 69 per flight 2019 = 71 per flight NOV 68,865 63,563 66,633 66,096 83,757 40,000 2022 = 84 per flight 2024 = 91 per flight DEC 67,220 58,384 70,888 67,316 89,107 2025 = 92 per flight (projected) 30,000 TOTALS 923,735 889,168 850,699 858,589 1,051,115 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC 7 2026 2025 2024 2008 Page 142 of 143 2026 Passenger Statistics 85000 2026 2025 2024 2019 2008 JAN 46,909 50,093 42,691 46,356 56,751 75000 FEB 48,062 49,619 44,133 49,867 57,216 MAR 53,806 56,029 45,049 56,400 60,116 APR 54,949 54,601 46,158 54,340 59,478 65000 MAY 65,369 55,533 50,972 55,209 58,166 JUNE 68,181 61,182 61,136 62,180 65,845 55000 JULY 74,262 72,243 68,026 71,381 79,154 AUG 75,593 74,199 72,448 71,200 79,304 45000 SEPT 70,827 66,294 67,296 62,116 63,544 OCT 73,084 80,446 76,054 66,795 69,556 35000 NOV 55,092 48,517 51,977 53,007 52,516 DEC 53,776 49,739 57,012 56,314 57,375 25000 TOTALS 744,743 718,495 681,925 705,165 759,021 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC 2026 Projected 2025 Projected 2025 2024 2019 2008 8 *Numbers reflected Passengers departing from BTV Page 143 of 143 **Underlined numbers are future estimates