STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: September 28, 2022
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 2023 budget - Financing: No cost consideration to the City (This item was deferred on September 14, 2022)
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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) 2023 budget. The total budget is $1.173 billion, a $133.4 million (12.8%) increase over the FY 2022 budget. Total passengers are budgeted at a record 78.3 million in FY 2023, a 6.8 million (9.5%) increase over the FY 2022 Outlook and 6.8% higher than FY 2019 (pre-pandemic); and non-airline revenues are budgeted at a record $476.5 million, a $51.3 million (12.5%) increase over the FY 2022 Outlook and 19.3% more than FY 2019.
The FY 2023 Operating Expenditure Budget is $618.4 million, a $54.6 million (9.7%) increase from the FY 2022 Outlook due primarily to costs related to increased passengers, fixed contract increases already approved by the DFW Airport Board, inflation in service contracts, parts, and fuel; and investments in digital technology. The budget includes a 5% merit pool.
The debt service budget is $554.8 million, a $78.7 million (16.5%) increase from the FY 2022 Outlook primarily due to the issuance of $1.3 billion of new debt in April and July 2022 to finance DFW Airport's capital programs, partially offset by savings from past refundings.
Airline rates and charges will rise approximately $120 million (25.3%) beginning January 1, 2023. DFW Airport will charge lower rates, the same to FY 2022, for the first quarter of FY 2023 in an attempt to get a new Use Agreement signed. If this is accomplished, DFW Airport will...
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