dfw airport board fy 2007 budget 102 revenue and expense … · 2006-08-15 · 1 fy 2007 adopted...

1

FY 2007 Adopted BudgetAugust 15, 2006

DFW Airport BoardFY 2007 Budget102 Revenue and Expense Fund

City of DallasFinance, Audit, and Accountability Committee

August 15, 2006

2


Agenda

Budget Assumptions & ObjectivesExpense Budget Overview Non-Airline Revenues OverviewAirline Revenues OverviewSummary

3


FY 2007 Budget Assumptions and Objectives

4


Fiscal Year 2007 Budget – PassengersFY 2007 passengers are budgeted to be 2.5% less than the FY 2006 Budget, but 2.1% better than the FY 2006 Outlook

58.6

57.4

60.159.1

58.6

48.0

52.0

56.0

60.0

64.0

FY04 FY05 FY06 Budget FY06 Outlook FY07 Budget

Total Passengers (Millions)

2.5%

5


Fiscal Year 2007 Budget – Landed WeightsFY 2007 landed weights are budgeted to be 8.4% less than the FY 2006 Budget, but 1.1% better than the FY 2006 Outlook

39.238.8

42.8

41.1

43.2

35.0

37.0

39.0

41.0

43.0

45.0

FY04 FY05 FY06 Budget FY06Outlook

FY07 Budget

Landed Weights (Billions of Pounds)

8.4%

6


FY 2007 Budget Objectives & Assumptions

Mitigate situation where possible to reduce airline paymentsGrow non-airline revenueContain and reduce costs where possibleMaintain or lower the landing fee from current rate of $4.94 Maintain or lower cost per enplaned passenger from current rate of $8.32

7


FY 2007 Budget Summary

8


Budget SummaryRequired airline contribution reduced by 15.4% ($38.6 million) due to lower expenses and higher non-airline revenues

FY06 Budget

FY07 Budget

Inc (Dec)

% Inc (Dec)

Expense Budget 630.6$ 618.7$ (11.9)$ (1.9%)

Less: Non-Airline Revenues 380.0 406.7 26.7 7.0%

Amount Paid by Airl ines* 250.6$ 212.0$ (38.6)$ (15.4%)

Percent Paid by Airl ines 39.7% 34.3%

* Amount paid through landing fees and terminal rents

Mil l ions

9


FY 2007 Expense Budget

10


FY 2007 O&M Budget - $619 Million

O&M Budget in Millions

$322$336

$297$295

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY 2006 Budget FY 2007 Budget

Operating Expenditures Net Debt Service & Coverage

FY 2007 Budget represents a $12 million reduction (1.9%), compared to FY 2006 Budget

$631 $619

11


FY 2007 Budget Walkforward

Millions

FY06 Budget. as Approved $635.2

Less: Pass-Through Expenses (4.5)

FY06 Budget, as Adjusted $630.6

Less: Budget Reductions

Reduction in Reserve Requirement ($17.5)

Other Budget Savings/Reductions (17.6)

Total Budget Reductions ($35.1)

Add - Major Cost Drivers

Cost Annualization/Fixed Increases $8.7

Scope Increases to Existing Programs 5.6

FY 2007 Merit Pool (5%, efective 1/1) 3.9

Increase in Debt Service 2.4

Other, Net 2.7

Total Budget Increases $23.2

FY07 Proposed Budget $618.7

12


Operating Expense Comparison

MillionsFY 2006 FY 2007 Inc

Descr ipt ion Budget Budget (Dec)

Salaries & Wages $97.9 $102.9 $5.0

Benefits 44.5 48.2 3.7

Contract Services 105.8 104.3 (1.5)

Equipment & Supplies 17.5 18.1 0.6

Utilities 36.4 37.4 1.0

Insurance 5.8 6.2 0.4

Gen'l Admin & Other 10.8 4.9 (5.9)

Subtotal $318.9 $322.0 $3.0

Operating Reserve 17.2 (0.3) (17.5)

Total Ops Budget $336.1 $321.7 ($14.4)

Net Debt Service 294.5 297.0 2.4

Total Budget $630.6 $618.7 ($12.0)

13


FY 2007 Non Airline Revenues

14


Non-Airline Revenues - $407 Million(1)

FY 2007 non-airline revenues are projected to grow $32 million (8.6%) compared to FY 2006 Outlook.

(1) Revenue projections are preliminary and subject to revision until final Rates,Fees and Charges are established.

Non-Airline Revenues in Millions

$135 $136$159

$248 $238 $245

$0

$100

$200

$300

$400

$500

FY06 Budget FY06 Outlook FY07 Budget

Operating Revenues Non-Operating Revenues

$380 $374 $407

15


Non-Airline Revenue Walkforward

Mill ions

Non-Airl ine Revenue, FY06 Outlook $374

Major ChangesTransfers from Other Funds 20 Parking 8 Concessions 3 Other 2

Increase in Non-Airl ine Revenue $33

FY07 Non-Airl ine Revenue $407

16


Non Airline Revenue Comparison(In Millions)

FY 2006 Budget

FY 2006 Outlook

FY 2007 Budget

FY 2007 Over

(Under) Outlook

Non-Airline Operating Rev

Parking $90.1 $90.1 $97.5 $7.4

Concessions 41.0 36.6 39.7 3.1

FIS, GA, Common-Use Gates 28.0 24.9 24.8 (0.1)

Rental Car Facility 24.1 27.2 27.5 0.3

Utilities 24.2 18.5 18.1 (0.4)

Commercial Development 20.0 20.8 20.5 (0.2)

Employee Transportation 7.0 7.7 7.5 (0.2)

Taxi, Limo, & Shuttle Fees 4.9 5.2 6.1 0.9

Other Rev 5.7 8.3 6.2 (2.1)

Total Non-Airline Ops Rev $245.0 $239.2 $248.0 $8.8

Non-Operating Revenue

Passenger Facility Charges (PFCs) $117.2 $117.1 $119.1 $2.0

Interest Income 9.9 11.4 12.3 0.9

Reimbursements from Other Funds 7.8 7.4 13.3 5.9

7/7/7 Program - - 14.0 14.0

Total Non-Operating Rev $134.9 $136.0 $158.7 $22.7

Total Non Airline Revenue $380.0 $375.2 $406.7 $31.5

17


FY 2007 Airline Revenue

18


FY 2007 Airline Revenues - $212 MillionTotal airline revenues expected to decrease by $39M (15%) from FY06 Budget and only 34% of total budget

Airline Revenues In Millions

$38$36

$38

$174$189$213

$0

$100

$200

$300

FY06 Budget FY06 Outlook FY07 BudgetLanding Fees Terminal Leases

$251$225 $212

15% Decrease

19


102 Budget Summary

20


Reduced Airline Share – Objective Accomplished Airline revenues from terminal rentals and landing fees decreased from 40% in FY 2006 Budget to 34%

Percent Airline Contribution

40%38%

34%

25%

30%

35%

40%

45%

FY06 Budget FY06 Outlook FY07 Budget

21


Cost per Enplanement – Objective AccomplishedFY 2007 Cost per Enplaned Passenger reduced to $7.25, down 13.1% from FY 2006 Budget and 7.9% from FY 2006 Outlook

* FY 2006 Outlook includes projected end of year settlement

Cost per Enplanement

$7.25

$7.87

$8.32

$5.00

$6.00

$7.00

$8.00

$9.00

2006 Budget 2006 Outlook 2007 Budget

13.1% Decrease

22


Comparison with other Airports

Cost per Enplaned Passenger Comparison - DFW FY 2007 = $7.25

0 5 10 15 20 25 30 35 40 45 50

Charlotte-Douglas**Atlanta

Orlando*Minneapolis-St. Paul

Las Vegas *Detroit

Houston (Bush)Dallas-Fort Worth

PhiladelphiaChicago-O'Hare

Los AngelesSeattle-Tacoma

New York (LGA) *BostonDenver

San Francisco *Miami

New York (JFK)Newark

Current Forecast

Source: Leigh Fischer* Forecasted amounts not available** Forecast amounts lower than current levels

23


Landing Fee - Objective AccomplishedFY 2007 landing fee rate reduced to $4.45, down 9.9% from FY 2006 Budget and the FY 2006 Outlook

* FY 2006 Outlook includes projected end of year settlement

$4.94$4.94

$4.45

$3.25

$4.00

$4.75

$5.50

FY 2006 Budget FY 2006 Outlook FY 2007 Budget

Landing Fee Rate

9.9% Decrease

24


DFW Airport BoardFY 2007 Budget102 Revenue and Expense Fund

City of DallasFinance, Audit, and Accountability Committee

August 15, 2006

dfw airport board fy 2007 budget 102 revenue and expense … · 2006-08-15 · 1 fy 2007 adopted...

Documents