STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: September 9, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Strategic Partnerships & Government Affairs
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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A resolution to approve the Dallas Fort Worth International Airport Board's FY 2021 proposed budget - Financing: No cost consideration to the City
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BACKGROUND
The Dallas Fort Worth International Airport is requesting the Owner Cities of Dallas and Fort Worth to approve its FY 2021 Budget. The total budget is $981.4 million. The budget assumes $68.7 million reductions from the FY20 Budget, largely in response to the COVID-19 pandemic, which has had a material impact on aircraft operations, passenger volumes, revenues and costs since March 2020 and will continue into FY21.
Though DFW has seen a reduction in passengers based on COVID-19, DFW is experiencing a faster recovery then other airports in the United States. In fact, in May and June 2020, DFW Airport was the busiest airport in the United States. Below are the major themes for this budget:
? Passengers are projected to be 53.1 million, a 7.5 million (16.5%) increase over the FY20 passenger projection of 45.6 million. This is primarily due to American Airlines' announced strategy to extensively utilize DFW, its largest connecting hub.
? Management identified $57.2 million (10.7%) of operating expense reductions before adding back funding for strategic priorities (customer experience and safety and security) and certain fixed cost increases. The total FY21 operating expense budget is $495.2 million, a $39 million (7.3%) reduction from the FY20 budget.
? The debt service budget is $468.2 million, $29.7 million (6%) lower than the FY20 budget primarily due to savings achieved from the July 2020 bond refunding.
? DFW has attained its publicly stated goal to keep FY21 landing fees and termina...
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