Which statement best describes the purpose of a long-range financial plan?

• A. It focuses on marketing the airport to tenants.
• B. It tracks day-to-day revenue only.
• C. It establishes debt capacity and funding strategies.
• D. It lists current maintenance tasks.

Answer: (C)

Long-range financial planning looks ahead to how the airport will fund major projects and sustain its capital program over time. It focuses on debt capacity and funding strategies—figuring out how much borrowing is prudent and what mix of financing (bonds, grants, internal cash flow, user fees, etc.) will support capital investments in the coming years. This planning aligns financial resources with strategic goals and ensures the airport can meet future needs without compromising stability.

Other options operate at different levels: marketing to tenants handles occupancy and lease revenue, day-to-day revenue tracking belongs to operating budgeting, and listing current maintenance tasks is about ongoing upkeep. None of those address how to finance large, long-term investments, which is the heart of a long-range financial plan.