STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: September 13, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Government Affairs
EXECUTIVE: T.C. Broadnax
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SUBJECT
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A resolution to approve the Dallas Fort Worth International Airport Board’s FY 2024 budget - Financing: No cost consideration to the City
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BACKGROUND
The Dallas Fort Worth International Airport Board (DFW Airport Board) is requesting and recommending that the owner cities of Dallas and Fort Worth approve its fiscal year (FY) 2024 budget. The total budget is $1.243 billion, a $78.6 million (6.7%) increase from the FY23 Outlook. Passengers are budgeted at a record 81.6 million in FY24, a 2.6 million (3.2%) increase over the FY23 Outlook and 11.4% higher than FY19. Non-airline revenues are budgeted at a record $520.4 million in FY24, a $20.2 million (4.0%) increase over the FY23 Outlook and 30.3% higher than FY19.
The FY24 Operating Expense Budget is $672.4 million, a $48.7 million (7.8%) increase from the FY23 Outlook primarily due to costs related to increased passengers, fixed contract increases, inflation in service contracts, parts, and utilities, continued investments in digital technology and restoration of CEO contingency.
The debt service budget is $570.8 million, a $29.9 million (5.5%) increase from the FY23 Outlook primarily due to new debt issued in FY23, including for two AA facilities, and the planned issuance of $300 million commercial paper in FY24, partially offset by savings from past refundings
DFW used its remaining $100 million of Federal Relief Proceeds (FRPs) in FY23 so there are no FRPs remaining to help offset airline costs in FY24.
Airline costs and CPE are budgeted to increase $139.3 million (29.4%) and $2.81 million (23.7%) from the FY23 Outlook, respectively, largely because $100 million of FRPs were used in FY23 to reduce airline costs. Without FRPs in FY23, the increases in airline costs and CPE would be $39.3 million (6.8%) and $0.28 (1.9%), respectively. The increased airline costs will result in higher landing fees and terminal rental rates. It is important to note that the airlines were fully aware, as part of the Use Agreement negotiations, that their costs would increase to these levels in FY24.
FISCAL INFORMATION
No cost consideration to the City.