STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: October 13, 2021 September 22, 2021
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 2022 proposed budget - Financing: No cost consideration to the City
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BACKGROUND
The Dallas Fort Worth International Airport Board is requesting and recommending that the Oowner Ccities of Dallas and Fort Worth approve its fiscal year (FY) 2022 Bbudget. The total budget is $1.04 billion, a $58.8 million (6.0%) increase over the FY 2021 Bbudget. Total passenger are budgeted at 67.2 million, a 26.5% increase over the FY 2021 Bbudget and only 8.3% less than the prepandemic levels of FY 2019. The increase in the FY 2022 Bbudget is primarily due to returning passenger and support services to pre-pandemic levels, fixed contract increases and investments in technology. The budget includes a 3.5% merit pool. The debt service budget remains flat to FY 2021.
Although airline rates and charges will remain at the same level as in FY 2021 due to the application of federal relief proceeds; airline cost per enplaned passenger will decrease from $17.28 in FY 2021 to $13.70 in FY 2022, a 26.5% decrease.
The budget also provides for a pass-through of $30.7 million of federal relief proceeds for concessionaires. These proceeds will be applied as billing credits reducing what the concessionaires pay the airport.
The budget was briefed to the DFW Airport Board on August 3, 2021. In accordance with the 1968 Contract and Agreement between the Cities of Dallas and Fort Worth, the Airport Board must submit the approved budget to the Owner Cities by August 15 of each year. However, due to on-going negotiations with airlines on the next Uuse Aareement, and the requirement that the Airport provide the proposed budget to the airlines for review and comment 45 days prior to approval by the Airport Board, the Airport will be unable to make the August 15th deadline. As a result, the Airport Board is requesting requested the Oowner Ccities to waive this deadline for this year and both owner cities agreed so long as the Airport Board submitted the preliminary budget to the respective cities. As a result, tThe Airport Board has submitted a draft the preliminary FY 2022 budget to the owner cities by August 15 and formally will not formally approved the budget on until September 2, 2021 after briefing the City Council on September 1, 2021. This item is scheduled for a full council briefing on September 1, 2021, though it is prior to Board approval, staff is confident that if any changes are made, they will be minor in nature and will be reported to the City Council. The Board-approved budget will be submitted as soon as it is approved, and then both Owner Cities must approve by September 30.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
No cost consideration to the City.