HomeMy WebLinkAboutResolution 4121-09-2012A Resolution
NO. 4121-09-2012
APPROVING THE FY 2012-2013 BUDGET FOR DALLAS/FORT WORTH
INTERNATIONAL AIRPORT
WHEREAS, the Dallas-Fort Worth International Airport ("the Airport") serves the
aviation needs of the cities of Dallas and Fort Worth; and
WHEREAS, the Dallas-Fort Worth International Airport Board ("the Board") presented the
FY 2013 annual budget to the City Council of the City of Fort Worth for its approval in
accordance with the Contract and Agreement between the cities of Dallas and Fort Worth, dated
April 15, 1968, as amended, which established the Board as the operating Board of Directors for
the Airport; and
WHEREAS, the Board has recommended that the City of Fort Worth approve the Airport's
budget for the fiscal year commencing on October 1, 2012.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
1.
That the Operating Budget for the Dallas/Fort Worth International Airport for the fiscal
year beginning October 1, 2012 and ending September 30, 2013 is hereby approved.
2.
That this resolution take effect immediately upon its passage.
Adopted this ► I` day of September, 2012.
ATTEST:
r
0000 000
rj
By: J6. . 0 6
Mary J. Kayse ty See"r"'e'tary
00 0
00 00000 00, if -I
F-2R,T LVOSY
ir
August 14, 2012
Jo Ann Brown, M&C Coordinator
Fort Worth City Hall
1000 Throckmorton Street
Fort Worth, TX 76102
Dear Ms. Brown:
DALLAS /FORT WORTH INTERNATIONAL AIRPORT
3200 EAST AIRFIELD DRIVE, P.O. BOX 619428
DFW AIRPORT, TEXAS 75261-9428
www.dfwairport.com
T 972 973 8888 F 972 973 5751
Attached is a copy of the Dallas -Fort Worth International Airport's budget for Fiscal Year
2013. The submission of this budget fulfills the obligations set forth in Amendment
Seven of the Contract and Agreement between the City of Dallas, Texas and the City of
Fort Worth, Texas, which requires the Airport's annual budget submission to the Cities
by August 15 of each year.
To demonstrate that this requirement was met, I would like a date stamped copy of this
letter. A scanned copy of the date stamp letter may be sent to my email address at
cdziuban(a_dfwairport.com in lieu of sending it in the mail.
Thanks very much for your assistance.
Yours truly,
Colleen Dziuban
Managing Director — Board & Owner City Relations
Attachment
MIENM
. . . .. . ....
low-
rc
FY 2013 Adopted Budget
_] Introduction
Table of Contents
Introduction
DFVVs Vision Statement and Board of Directors ................... ........................................ ----'2
DF\NInfrastructure .------------------------------------------4
StrategicPlan ......... --........................................................... ........................................................... G
DFVVo Use Agreement Model .---------------- ........ ................. ........................... 7
(]FVV Fund Structure ... ................................................................................ .................................... 9
FY 2012 Budget Amendments and Outlook ................................................................... 1O
BudgetSchedule .................... ..................................................................................... 11
Executive Summary
Historical Pe on the DFVV Budget ---------------- ....................... ........ 12
FY2O13Budget Overview ............................................. ........................................... 14
Key Performance Indicator #1' Total Airline Cost ------ .................................................. 15
Key Performance Indicator #2- Passenger Airline Cost per Enp|ana/nent(CPE) ....... ............ 17
Key Performance Indicator #3- Net Revenues from DFVV Cost Cenhar— ..... ............. --....... 18
Revenues and Expenses Budget Overview ............................. .......................................... 2O
Capital Programs and Debt Financing ................ ................... .......................... ................... 32
Airline Cost Centers
AirfieldCootCenter'------ ------- -------- -------------- 33
Terminal Cost Cmnter .......................................... ................................................ —.......... 26
Transfers - Joint Capital Account Transfer .................................................. ........................... 28
Transfers -DFVV Terminal Contribution ............................. ........... ............................................ 28
Cost Per Enpdanernent (CPE) Calculation ..... -- ... —.......... ....... ............... ............. 3O
DFW Cost Center
[}FVVCost Center Revenues and Expenses .-------------------------'31
Parking Business Unit L------------------- .................... ................... ............. 32
Concessions Business Unit ........................................................................................................ 34
Rental Car Center (RAC) Business Unit .................................. ............. ............. ...................... 35
Commercial Development Business Unit ................ —....... .............. .......................... .......... 3G
Other[)FVV Revenues ................ ................ .............................................................................. 37
Operating Expenses
FY2O13 Expense Budget bv Major Cost Dhvar— ............... ......... ................................ ........... 30
Operating Budget bv Category ............................................... ................. ............. ................... 43
Contingency Outside of Rate Base. ........................................................................................... 4G
Net Debt Service Budget-----------------------------------'46
Departments
Department Overview and VVa|kfonwardo ......................... ........................................................ 48
Capital Budget
Projected Capital ' Uses cf Cash bv Capital Account --- ............. ...................................... 55
OFVVCapital Account ...... --.................. ....... ........................................... ........................... OO
JointCapital Account ............. ............. .......... ............................................. —........................ OS
CapitdProect-SouroeoofCaoh ---------- --------------- -- — ---. 71
11 DFW International Airport
FY 2013 Adopted Budget I Introduction
DFW's Vision Statement
"DFW International Airport - Connecting the World"
Robert W.
Lillie M.
Hsueh
Biggins
Board Chair
Vice Chair
Dallas
Fort Worth
Board of Directors
Sam
Mike
Coats
Rawlings
Secretary
Mayor
Dallas
Dallas
Betsy
Price
Mayor
Fort Worth
Francisco
Hernandez
Fort Worth
Ben Brenda E. Forrest Bernice J. Jeffrey K. Glenn
Muro Reyes Smith Washington Wentworth Porterfield
Dallas Dallas Dallas Dallas Fort Worth Euless
DFW's Mission Statement
DFW International Airport will provide
our customers outstanding facilities and services,
expanding global access and economic benefits to those we serve.
DFW's Primary Business Goal
Grow the core business of domestic and international passenger
and cargo airline service.
2 1 DFW International Airport
FY 2013 Adopted Budget I Introduction
Airport Background '
The Dallas/Fort Worth International Airport (the "Airport" or^DFW') was created by "Contract
and Agreement" between the cities of Dallas, Texas, and Fort Worth, Texas (^theCihea^)on
April 15. 1968 for the purpose of developing and operating an airport as ojoint venture between
the Cities. Although owned by Dallas and Fort VVodh. DFVVia located within the boundaries of
the Cities of Grapevine, CmppeU. Irving, Euless, and Fort Worth; and within Dallas and Tarrant
Counties.
Source: DRN Airport Information Technology ServicesIG|8Gmup
3 FDFW International Airport
FY 2013 Adopted Budget I Introduction
OFVV is o located within a four-hour flight time of 95% of the U.S. population and currently ranks
fourth among the world's busiest airports in benna of operations and eighth in benna of
passengers. Its central location is the focal point of one of the nation's largest intermodal hubs,
connecting air, rail, and interstate highway systems. DFVV currently operates daily passenger
flights to 193 destinations worldwide, including 144 nonstop domestic destinations and 49
nonstop international destinations. There are 20 passenger carriers and 15 cargo carriers
serving 0F\8/ The Airport is recognized as m premier inland cargo hub, served by major
international oer0n carriers. According to the Texas Department of Transportation, DFVVie the
primary economic engine for North Texas, driving $157 billion of economic impact, supporting
268,000 jobs, and generating $7.4 billion in payroll annually.
DFWKnfrastructQre
Airfield — DFVVhas more operational oameoitv than any airport in the United States with seven
runways: five north/south parallels and two diagonals. Four ofDFWo runways are 13.400feet
in length. []FVV is focused on the future and preparing to handle next generation aircraft,
including the Airbus A380. The Airport's designated hourly capacity arrival/departure flow is
approximately 186-193 aircraft operations per hour under reduced instrument flight conditions
and approximately 270-279 aircraft operations per hour under optimum visual flight conditions, a
condition that prevails approximately 94% of the time. DFVVestimates it is using dose to 0096
of its aircraft operation capacity at this time.
Terminals — DFW has five terminals (A, B. C. O. and E) totaling 47 million square feet of
building space, including 156 aircraft boarding gates, 183 ticket positions, 171 self-service
kiosks, and 15 security checkpoints. As of June 30. 3012. S of the gates were closed for
renovation as part of the Terminal Renewal and Improvement Program (TRIP) and 19 were not
regularly scheduled, including 8 gates in the dormant Terminal E Satellite facility that is
connected to Terminal E via otunne|. {|oUeutive|y, the airlines averaged 6.6 turns per active
gate for the first mix months ofFY2012.
DFW Terminal Complex
American Airlines operates domestic service in Terminals A and C. and both domestic and
international service in Terminal D, American Eagle operates domestic service in Terminals B
IFY 2013 Adopted Budget I Introduction
and D. and international service in Terminal O. All other domestic flights operate from Terminal
E All international flights operate from DFWs Terminal D, Terminal D has 1.0 million square
feet and 27 gates. All terminal Qode leases expire September 30. 2020 per the terms of ten-
year Airline Use Agreement which became effective in 2010. DFWs Federal Inspection Service
(F|S) facilities are located in Terminal D. The Airport's F|3 facility is approximately 406.000
square feet with GO inspection booths and 8 baggage carousels. The F|S has the capacity to
handle approximately 2.00O international customers per hour,
DFW is responsible for all of the janitorial and facility maintenance in Terminals B, D and E, and
baggage maintenance inTerminals Band E. Most of the maintenance and janitorial functions
one contracted out to third parties. Coats associated with maintenance of these facilities are
included in DFWm operating budget. American Airlines is responsible for the majority of the
facilities nneintenanoe, custodial services and all of the baggage maintenance in Terminals
and C. In Terminal D, they maintain their preferentially leased jet bridges and baggage systems.
The cost of these maintenance activities are paid directly by American Airlines and not included
inDFWs budget ur financial statements.
Transit System —DFWspeookamoveneymtem(Shv|inh ) transports passengers and employees
between bannina|o on the secure aide. DFVVoperates 16 to 24 fully automated care on Skx|ink
during normal operations. Sky|ink cars circle the 5termina|a in 2 dinecdions, and trains arrive an
average of every 2 minutes at each terminal. There are Gkv|inh stations in each terminal. The
average customer ride iaabout 5 minutes. DFVValso uses buses to transport passengers and
employees between terminals on the non-secure side, as well as to the Grand Hyatt Hotel,
parking lots and the Consolidated Rental Car Facility (RAC). OFVVuses 39 buses to shuttle
passengers between the terminals and Grand Hyatt (Terminal Link); 58 buses between remote
and express perking lots and the terminals; 5 buses for various DFVV activities and service
between the Trinity Railway Express Centerpoint station and thetennina|a� 32 buses between
employee parkin0|oteandthebarmina|o�and4Gbuaembebmeenthetermoine|sondthaRAC.
Airport Operations Center/Emer-gency Operations Center (AOC/EOC) —DFWoA0C/EOC
serves as a single point of contact to centralize communications for DFWs passengers, guests,
tenanta, emp|oyeea, and oordrootona. This includes the 9-1-1 call management of police, fire
and emergency nnmd\oa| nsapmnae teams and 3-1-1 non-emergency services. ThoAOC/E()C
handles an overage of 26,400 and 1.950 ca||a, reopeotive|y, each month.
DFW Controlling Documents
In addition to the Contract and Agreement between the Cibeo. OFVVie governed by several
other hey documents, including the n»m Supplemental Bond Ordinance which modified the
original 1968 Concurrent Bond Ordinance (collectively called the Bond Ordinances); and the
Use Agreements between DFVVand the Signatory Airlines. Co||ective|y, these agreements are
called the Controlling Documents.
The Controlling Documents define how DFW manages its business affairs. DFW does not
ooUmot any local tax revenue to fund its operations. The Controlling Documents require that
Gross Revenues of the Airport be deposited into the ^102 Revenue and Expense Fund" (102
Fund). Gross Revenues are defined as all Airport revenues and receipts except: bond
proceeds; Passenger Facility Charge (PFC) proceeds used to fund capital projects (rather than
for debt service); interest earned on unspent bonds-, proceeds in the Capital Accounts; PFC
receipts-, grant proceeds used to fund capital projects-, and sale of land or mineral h0hts,
including natural gas royalties.
FY 2013 Adopted Budget I Introduction
Strategic Plan
DFVV updated its Strategic Plan in FY 2012 keeping the same overall structure as its previous
Plan, but with some change in strategic focus on:
• The initiation of the 7-year, $2.0 billion Terminal Renewal and Improvement Prou:mnn
(TRIP) to renovate and modernize our 4 older terminals.
• The impact of global airline alliances on airline and airport competition, and DFWa
increased focus on becoming the most preferred "Super Global Hub" in the world.
• A new 10—vear Airline Use Agreement that nadefimaa DFN/s business model and
relationship with the airlines.
• An increased emphasis on becoming a^businems partner' with air|ines, and contractors
to provide superior services toDFVVo passenger guests.
• An expanded definition ofDFWo primary customer groups beyond the passenger to
include airlines and tenants.
• A critical shift in focus - that all DFWs employees either directly or indirectly support our
customers.
• A new financial plan that establishes [JFWs financial targets through IFY2O2O.
The Strategic Plan is a critical dnounxerd that includes DFWa Vision and Mission Statements
and identifies the critical strategies to achieve [}FWo Primary Business Goal of growing the
oona business of domestic and international passenger and cargo airline service. OFVVtakes a
balanced approach to its Strategic Plan. Management focuses its Key Drivers/Results nfbeing
cost cnmpetitive, satisfying the cuetnnner, and achieving operational exue||ence, through
engaged employees. A copy of[>FWa full Strategic Plan is available at .A
schematic of the DFVV Strategic Plan follows:
KEY nssuoS
STRATEGIC OBJECTIVES & INITIATIVES
osuspS
STRATEGIC OBJECTIVES & INITIATIVES
IFY 2013 Adopted Budget I Introduction
Airline Use Agreement Rate Model
The Use Agreement is a hybrid model whereby the Signatory Airlines pay landing fees and
terminal rentals booed on the net cost to provide those services, and DFVVretains a portion of
the net revenues from non-airline business units (a.g., parking) in the DFVVCost Center, The
following chart iaa summary nfthe current Airline Use Agreement rate model.
Operating Revenue and Expense Fund (the 102 Fund)
Direct Costs
DPS and Overhead AUooatio
Debt Service (net ufPFCo)
Less: Misc. Airfield Revenues
General Aviation
Fueling Facility Lease
Expense}
Direct Costs
DPS and Overhead Allocatio
Debt Service (net of PFCs)
Less: Misc. Terminal Rentals
Federal Inspection Fees
Turn Fees-, TSA Rentals
Concessions Reimbursements
Transfers/Adjustment +/- Transfers/Adiustment
Lower Threshold Adjustment + DFW Terminal Contribution
+ Upper Threshold Adjustment + Annual Capital Transfer
+/- True-Up Adjustment +/- True-Up Adjustment
Net Cost= Landing F��KPI Net Cost =Terminal Rentals (KP
Airline Cost & Airline Cost per Enplanement (KPI)
+ Natural Gas Royalties
+ Sale of Land Proceeds
Annual Capital Transfer io
the Terminal Cost Center
7undod from existing coverage,
plus coverage from New Debt
Service from all three cost
centers au debt service
increases
Parking, Concessions, RAC,
Commercial Development,
Employee Tronmp.Taxis,
Utilities, and Interest Income
Direct Costs
DPS and Overhead Allocations
Debt Service (net ofPFCn
- Transfers/Other
Skylink Costs
DFW Terminal Contribution
Net Revenues
Threshold Adjustments
True-Up Adjustment
Net Revenues to the
DFW Capital Account (KPI)
Funded annually from DFWCC.
Contributions must be higher the/
Lower Threshold and cannot
exceed the Upper Threshold.
Airline Cost Centers — The Airline Cost Centers are cost recovery in nature, such that the
amount charged to the airlines equals the cost to provide senvioea, after certain adjustments.
Landing fees and terminal rental rates are based on the net cost tn operate and maintain the
airfield and terminals, respectively. DFW charges the direct operating and maintenance costs
FY 2013 Adopted Budget I Introduction
for the airfield and terminals, plus allocated Department ofPublic Safety (DPS) and overhead
000ta, plus debt service, net ofPassenger Facility Chargeo(PFCa). to each cost center; then,
subtracts ancillary revenues generated in these cost centers; and credits or charges certain
transfers and/or adjustments (see True-Up Adjustments below). The budgeted landing fee rate
is determined by dividing the net cost of the airfield by aednneted landed weights. The budgeted
average terminal rental rate is determined by dividing the net cost of the terminal ouat canter
divided by leasable square footage. The Use Agreement requires the Airport to charge an
equalized terminal rental rate for all 5t*rnnina|s.
The amount paid by the airlines for landing fees and terminal rent fees |eoe airline incentive
payments equals airline nost, which is an airport industry Key Performance Indicator (KP|).
Another common industry KP| is passenger airline cost per enplaned passenger or CPE. This
KP| for passenger airlines iocalculated by dividing the amount paid by passenger airlines for
landing fees and terminal rent fees less airline incentive (i.e., airline noeU by the number of
enp|anemanta.
DFW Cost Center — All non-airline business unite, plus interest inconne, are included in the
OFVVCost Center. The OFVV Coot Center is also responsible for all costs associated with the
Sky|ink people mover myobenn per the terms of the Use Agreement. The net revenues from this
cost center are transferred to the DFW Capital Account providing the net revenues are not lower
than the Lower Threshold or not higher than the Upper Threshold. If either of these ocour, then
a Threshold or True-Up Adjustment is required. One of DFWm most important P{P|e is Net
Revenues from the DFVVCost Center. This KP| measures the net revenues generated by
DFVVa non-airline business un/ts, after adjusting for the cost ofShv|inh. and drives the amount
of cash flow that can be transferred to the DFVV Capital Account each year.
Joint Capital Account - Funds in the Joint Capital Account (JCA) require OFVVand airline
approval before money can be spent. The JCA is funded from the proceeds from natural Bas
royalties and the sale of |and, plus interest income on the account. Supplemental funding for
projects paid from the JCA ooroea from grants and the issuance of debt Per the terms of the
Use Agreement, an Annual Capital Transfer (described be|ow) is made from the JCA to the
Terminal Cost Center to lower airline cost through FY2U17.
Coverage Account —TheAirpod established the Coverage Account as pad of the new Use
Agreement in order to implement rolling coverage. It was initially funded from coverage
collected in FY 2010 (the last year of the old Use Agreement). Each year, the Coverage
Account is rolled into the 102 Fund as source ofrevenue, and then transferred back into the
Coverage Account as excess revenue at the end of the year. The Coverage Account must equal
25% of aggregate debt service each year. |f new debt is isaued, each cost center must generate
the incremental coverage required to fund 25% of the new debt service. These incremental
coverage amounts are collected in the 102 Fund through rates and charges during the finoo|
year.
DFW Capital Account — This is 0FWa discretionary account and is funded primarily from the
Net Revenues of the OFVVCost Center, plus interest income. Supplemental funding for projects
paid from the DFVVCapital Account comes from grants and the issuance of debt. Funds in this
account may be used for any legal purpose without prior airline approval.
Threshold Adoustments —TheUaeAgreennentestab|iahedmLovverThraoho|dandmnUppmr
Threshold for Net Revenues from the DFVVCost Center to limit the amount transferred annually
to the 0FVVCapital Account. If DFVVCost Center Net Revenues are budgeted to be less than
8 1 []FW International Airport
FY 2013 Adopted Budget I Introduction
the Lower Threshold ($42.2 million in FY 2013), then on incremental charge (i.e., a Lower
Threshold Adjustment) is collected through landing fees in an amount sufficient to achieve the
Lower Threshold amount, Conversely, if OFVVCost Center Net Revenues are budgeted to be
greater than the Upper Threshold ($63.2 million in FY 2013), then 75% of the excess is credited
to the Airfield Cost Center as on Upper Threshold Adjustment. This reduces budgeted landing
fees. The remaining 25% may be retained in the OFVVCost Center and transferred to the OFVV
Capital Account at the end of the fiscal year. The benefit of the Lower Threshold Adjustment is
that it guarantees that OFVVwill have a minimum level of cash to transfer to the OFVV Capital
Account so that C>FVVcan replace assets on e timely basis. Conversely, the Upper Threshold
limits the Airport's ability to generate significantly more net revenues and serves to reduce
Airlines' costs as non-airline revenues increase. It also places a limit on OFVVo ability to
significantly inonsaam its coverage ratios. The Threshold Amounts are adjusted annually for
True-Up Adjustments —Adthe end of each fiscal yaur, DFVV performs o reconciliation or true-
up, such that revenues oo/kaob*d equal the actual net cost to operate and maintain the airfield
and the terminal. Any difference becomes m True-Up Adjustment and is either charged or
credited to that cost canter in the next fiaoa| year. The True-Up Adjustments for the airline cost
centers are applied back to that cost center the following year beginning in January. [)FVVCost
Center True-Up Adjustments are applied against landing hoes beginning in the following
January.
Annual Capital Transfer —Per the terms of the Use Agreement, an annual transfer iemade
from the Joint Capital Account to the Terminal Cost Center to reduce the cost of the terminals to
the airlines for a period of7 years. This transfer was $28 million inFY2O11 (first year of the new
Use Agreement) and will be $20 million in FY 2013 The transfer will be reduced by $4 million
each year through FY2D17 when it will beeliminated.
DFW Terminal Contribution —Per the terms of the Use Agreement, an annual transfer ismade
from the DFW Cost Center to the Terminal Cost Center to pay for0HWs share of common use
and kaaoable, butun|eaoed apaom. in Terminals [) and E. This amount is $8.7 million in FY
2013.
DFW's Fund Structure
Although DFVV uses the word "fund" to describe the designation ofthe source and prospective
use ofproceeds, DFVV is an Enterprise Fund and does not utilize traditional fund accounting
commonly used by government organizations. The following table summarizes the primary
funds used by DFVV:
Number Fund Description Primary Use
101 Fixed Assets and Long Term Debt Balance Sheet
102
Operating Revenues and Expenses
252
Passenger Facility Charges (PFC)
320o/230a
Joint Capital Account and Bond Funds
340n
DFVV Capital Account and Bond Funds
500-600a
Debt Service and Sinking Funds
907/910
Public Facility Improvement Corporation (PFkC)
Operations
CepitaN]ebtSemice
CopitaUDebt8emice
CapitoVDebtServicm
Debt Service
Rental Car Facility/Grand Hyatt Hotel
FY 2013 Adopted Budget I Introduction
DFWs financial statements are issued in conformance with Generally Accepted Accounting
Principles (GAAF) and include all of OFWnfundo. whereas the Annual Budget h»ouogs on
revenues and expenses included in the 102 Fund. OFVVmanages its day-to-day operations
primarily through the 102 Fund in accordance with the Controlling Documents,
Basis of Budgeting
The 102 Fund Budget im commonly called the Operating Budget, but contains elements that are
not expenses under GAAP such as debt oamice, neean/a requinemenba, and certain
expenditures that may be capitalized under GAAP.
Capital expenditures are funded through the issuance of Joint Revenue Bondy. grants, PFC'a,
or through the DFVVor Joint Capital Accounts. From a process standpoint, the Board of
Directors does not approve an overall capital budget. The Board reviews the capital budget
during the Annual Budget process and when it reviews the Financial Plan. The Board does
approve all contracts associated with capital projects.
FY 2013 Budget Comparisons to Other Periods
FY 2012 Budget Amendments — During FY2O12 the Board approved o budget amendment ho
the FY 2012 Budget which is summarized in the following table. Any reference to the FY 2012
Budget in this budget document relates to the FY 2012 Budget, as amended.
FY 2012 Outlook — OFVVemploys continuous forecasting techniques to project revenues and
expenses for the full 12 months of the fiscal year (called the Outlook). Most of the tables and
charts in this budget document include FY2O12 Outlook comparisons to provide the best basis
for comparison (rather than comparing to the FY 2812 Budget). The detailed Outlook in this
Budged Book was developed in m bodunna'up process such that every account was nofonenaet.
This was completed in May 2012.
Financial Plan — DFW issued its first ten-year Financial Plan in December 2010 and this plan is
updated annually with the latest update in March 2012. This Plan was the basis for the
negotiation of the Use Agreement with the Airlines and has been linked to DFWs Strategic Plan
to establish long-term goals for the KPIs shown in yellow in the DFW Business Model discussed
above (Airline Cost, CPE. and Net Revenues from DFVV Cost Center). Management's long term
goal is to achieve or exceed the targets for these KP|o since this was the basis for the Airline
Use Agreement. Accordingly, comparisons to the Financial Plan for Fiscal Year 2013 are
10 1 DFW International Airport
Millions
FY2O12 Approved
$ 801.6
Approved Changes (and Dates)
Retirement Enhancement (July 26. 2012)
2.1
Demolition ofold buildings (July 26. 2012)
1.0
Debt service from PHC refunding (July 28. 201
FY 2012 Budget, as Amended
FY 2012 Outlook — OFVVemploys continuous forecasting techniques to project revenues and
expenses for the full 12 months of the fiscal year (called the Outlook). Most of the tables and
charts in this budget document include FY2O12 Outlook comparisons to provide the best basis
for comparison (rather than comparing to the FY 2812 Budget). The detailed Outlook in this
Budged Book was developed in m bodunna'up process such that every account was nofonenaet.
This was completed in May 2012.
Financial Plan — DFW issued its first ten-year Financial Plan in December 2010 and this plan is
updated annually with the latest update in March 2012. This Plan was the basis for the
negotiation of the Use Agreement with the Airlines and has been linked to DFWs Strategic Plan
to establish long-term goals for the KPIs shown in yellow in the DFW Business Model discussed
above (Airline Cost, CPE. and Net Revenues from DFVV Cost Center). Management's long term
goal is to achieve or exceed the targets for these KP|o since this was the basis for the Airline
Use Agreement. Accordingly, comparisons to the Financial Plan for Fiscal Year 2013 are
10 1 DFW International Airport
FY 2013 Adopted Budget I Introduction
included in this Budget Book. A complete copy of the 2012 Financial Plan is available at
Presentation of Amounts & Prior Years Actuals —TheFY2O13Budoetinpraaentedintablea
and charts that are rounded to millions and thousands. Some columns and charts may not
appear to odd-up or foot due to rounding differences, Certain prior year amounts have been
reclassified to reflect the FY 2013 presentation.
Budget Schedule
DFW's fiscal year begins October 1. The FY 2013 Expense Budget was compiled by the various
DFW departments in May and June 2012, and then reviewed and modified by Executive Staff in
June and July 2O12. A presentation was made to representatives ofthe Signatory Airlines on
June 12.2O12 with follow-up information provided. A preview of the FY2O13 Budget was
presented to the Board on July 12.2O12. The final recommended Budget was presented toand
approved by the Board on July 28.2O12. The F`/2O13 Budget must be submitted to the City
Managers of Dallas and Fort Worth by August 15, 2012 with approval of the two City Councils
by September 30.2O12.
111 DIFW International Airport
FY 2013 Adopted Budget I Executive Summary
A Historical Perspective on the DFW Budget
DFWo Board and management team have always focused on being one of the most cost
effective airports in North America and the world. Based on our most current survey (shown on
page 16), oFVV
has achieved this by employing innovative nnanaQennent, cost containment, and debt strategies,
and by focusing on growing non-airline revenues. The h/Unwin0 chart provides m historical
perspective of DFWs Total Annual Budget since FY 2006 through the FY 2012 Outlook.
Total Annual Budget Expenditures
Millions
$600
$400
$200
$100
$O
DF\Ayo total FY 2012 Outlook of $604 million is $3 million less than in FY 2008. The red |imm,
which reflects the change in O&M oosto, shows that costs have risen only 0.9Y6 per year on e
compound average growth rate (CAGR) since FY 2006.
New Use Agreement and Terminal Renewal and Imiprovement Program (TRIP) -FY2O12was
the beginning of new phase for DFVV, DFVVdeveloped a ten-year Financial Plan to support
the negotiations of the new ten-year Use Agreement that became effective on October 1, 2011.
FY 2013 Adopted Budget I Executive Summary
The airlines signed the Use Agreement acknowledging that the budget and airline omet would
increase significantly due to the following elements:
(1) Completion of the debt restructuring plan. In FY 2009 DFW started implementation
of a plan to restructure existing debt outstanding to save the Airlines $255 million
between FY 2009 and FY 2018. This plan, shown in the chart below, was developed
specifically to give the airlines relief for a prolonged period of time. Once
implemented, however, there would be a gradual annual fixed increase in airline debt
service payments of $5 to 6 million before incremental coverage.
Debt Restructuring Summary -Airline Cost Portion Only
Millions
$300
mm" Original Debi Service
$250
$150
$100
$O
� Restructured Debt Service
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
(2) An annual reduction of capital transfers to subsidize terminal rents. The airlines
agreed that cash transfer subsidies from the Joint Capital Account would be reduced
by $4 million per year, from $20 million in FY 2013 to $O in FY 2018. Accordingly,
airline costs will increase 84 million each year through FY2O18.
(3) FI{| Credi. The Use Agreement also provides for transfers of approximately $55
million annually from the DFVV Cost Center to the Terminal Coat Center. lowering
airline costs for airline issued debt for terminal improvements. Because AMR
rejected its Facility Improvement Corporation (RC) debt in bankruptcy, this credit will
nm longer be given inFY2D13. causing airline costs to increase inFY2O13.
(4) Issuance and repayment of debt to finance $2.6 billion of new capital Projec ($2.0
billion for TRIP plus $0.8 billion for other approved projects). This is by far the largest
single reason for increased airline costs over the next decade. The Financial Plan
includes the assumption that DFVVwill issue approximately $2.8 billion in new debt
through FY 2017. Annual debt service ia projected to increase approximately $231
million by FY 2020. per the Financial Plan. The airlines will pay a significant portion
of this increase in higher terminal rentals. The total increase in debt service is $45.5
million inFY2O13 compared to the F'Y2O12Outlook.
In summary, DFW is entering a period where it will see its cost structure increase significantly
over the next O years due primarily to the items mentioned above. Management will continue to
seek ways tomitigate other significant expanse increases as it has historically demonstrated.
Most of the future increases in DFVVs cost structure are fixed and cannot be avoided unless the
Airport discontinues the TRIP.
13 1 DFW International Airport
FY 2013 Adopted Budget I Executive Summary
FY 2013 Budget Overview
The FY 2013 Budget is $654.8 million, u $51.0 million U8.5%J increase over the FY 2012
Outlook primarily due to increases in debt service ($46.5rniUion). $35.1 million of the increase
in debt service is related to new facilities placed in service in FY 2013 (such as Section A of
Terminal and the associated parking garage) and increases in existing debt. The remaining
$10.4 million increase is attributed to debt service for the Grand Hyatt, which is now pad of the
Airport's operating fund and fully reimbursed by the hotel.
Operating expenses increase by $5.4 million (1.596) from the FY 2012 Outlook. Of this
increase, $4.4 million relates to the Airline Cost Centers. and $1.0 million relates to the OFVV
Cost Center. Because of our efforts ho manage costs. the FY 2013 Budget reflects reductions
from the 2012 Outlook as o result of the outsourcing of remote parking operation ($1.4 mi||ion),
the early retirement program ($5.5 rniUion), and the locking in of utility rates ($1.7 million). The
savings have partially offset increases primarily due to:
• Contract increases (Terminal Emaintenance, Skv|inh, security cameras, and expanded
employee bussing);
• FAA requirements on the airfield (paint and rubber removal);
• TRIP related operating impacts (parking vxavUndin0 and Terminal Enanno);
• Restoration of the deicing budget from an abnormally mild year;
• Modest merit increase (3Y4 merit pool for general employees, 196 for DPS);
• Healthcare inflation (net of additional cost sharing byemnp|oyees);
• Actuarially determined increase in retirement plan contributions;
• Property insurance premiums because of recent storms;
• Restoration of fire training budget because the facility was closed for renovation in 2012;
• Replacement of outdated lighting; and
• Strategic initiatives consistent with DFWo2O12 Strategic Plan (international marketing,
global entry passenger facilitation, and wheelchair mueiotmnce).
A walk forward of the FY 2013 Budget from the FY 2012 Outlook is included on page 21.
During the budget process, the planned activity for FY 2013 is reviewed and aligned withOPVVs
overall Strategic P1on. The FY 2013 Budget is compared to the current FY 2012 Outlook and
the FY 2013 Financial Plan prepared earlier this year. Below are some assumptions that were
used in preparing the F`/2O13Budget.
AMR Bankruptcy. [)n November 29.2D11. AMR Corporation, the parent company ofAmerican
Airlines (AA) and American Eagle filed voluntary petitions for Chapter 11 reorganization. AMR
represents 8596 of DFVV passengers, 7896 of landed weights, and 3096 of total 102 Fund
revenues. OFVVinAK8F1'n largest hub, representing approximately 40Y6 of/\MR('ntotal traffic. On
July 18. 2012. the bankruptcy judge approved AK8R'a motions seeking to assume all unexpired
leases for nonresidential real property at the Airport, including the Use Agreement, to cure any
defaults under such leases by paying any amounts due and owing under such |easos, and
approval for modifications to certain lease terms under certain leases. AMR did reject the
facility agreements associated with its unsecured debt issued by OFVN'o Facility Improvement
Corporation (F|C). Although AMR uf5oim|o have publicly stated that they plan to grow their
business at [)FWund their other cornerstone hubs (up to 2096), it is premature to increase
14 1 DFW International Airport
FY 2013 Adopted Budget I Executive Summary
• Debt service costs related to TRIP and agreed upon increases in existing debt service;
• Reduced capital contributions and the elimination of the credit resulting from AMR's
rejection of FIC debt in bankruptcy proceedings, pursuant to the Use Agreement; and
• One-time credits provided to airlines in FY 2012.
QPE Trending at DFW —CPE is defined as total passenger airline coot (i.e,, revenue paid to
DFW) divided by the number ofenplaned passengers. CPE is a common measure used by the
airline industry. The denominator is enplaned passengers and is used because it is a key
revenue/cost driver for anairline. This ie not the case for on airport, however. Airport costs are
based on the facilities and runways maintained Notwithstanding this issue. DFVV (and the
industry) use this indicator ama performance measure.
The following chart displays CPE from FY 2006 through the FY 2012 Outlook. CPE has
fluctuated each year based on airline costs. The overall reduction in CPE through FY 2012 is
due to the debt restructuring and cost reduction initiatives.
CooPerEnp|anement
$7.50
Fvos pvnr pvno pvoe pvm pvn p/120L
Nom -Use Agreement w" Is, IFYo-Tr~~wrappliedw FYI 2,AJ, Service mcent va rebates red m"
Airline Cost beginning in FYI I
The FY2013CPE of $7.91 represents an increase of $1.50(23.4%) from the FY2012Outlook.
From the vva|hfonwgrd abVve, the increase is driven by debt service and Use Agreement
adjustments. The FY 2013 CPE of $7.91 is $0.57 (6796) |oaa (better) than assumed in the
2012 Financial Plan.
CPE Benchmarked to Other Airports — OFVVs goal is to have a competitive CPE. The V
preceding chart trends OFWs performance over time. The following chart benchmarks []FWs �
fully loaded CPE with the fully loaded CPE projections for DFWs competitive set of 13 large
U.S hub airports using the latest data available from AC| surveys (i.e.. FY 2011 aotuaks). '
Based ona comparison of2O11 actual results OFVV was the lowest cost large hub airport inour �
competitive set, which reflects our cost containment. Evan with the increase in C)���s
' � U
Fiscal Year 2O13 airline costs (phnnahh driven by TRIP and the Use Agreement provisions),
DFVV compares favorably with the other airports' 2O11 results. o
�
Fully loaded cost is the most meaningful comparison because it includes most of the costs
incurred by airlines tooperate at an airport including what they pay the airport (light b|ue). what �
17 1 DFW International Airport
�
FY 2013 Adopted Budget I Executive Summary
they pay directly for terminal maintenance and terminal debt service (dark b|ue), and an
estimate of what the airlines pay for delay and taxiing costs (red).
This chart shows that DFW is well-positioned from a cost standpoint against the competitive set
and that []F\Nio clearly American Airlines' lowest coot hub airport (which includes NewYorh-
JFK. Chicago —[>'Hane. Los Angeles, and Miami).
Fully Loaded Cost per Enplaned Passenger
x/L v,""° ��"" ""u/, ,�p""�=
SEA
1 $19.57
DFW 2013
revenues from the DFVV Cost Center.
Millions
NSP
�/y*
$71.8 $74.3
DEN
�o�w
SFQ
wzazm
mW
v�^n
|AH
weo.1a
BOS
$�.�
LAX
$ou.m
M|�\
»zo.w
ORD
$29.56
_~~~_.—,~`~~~-~
• Cost on Airlines' Books*
• Delay and Taxiing Cost—
Red text indicates AA Hub/MajorAirporls
Cost from Ricondo 2012 study. Other estimates from DFW
Maintenance and DebtService cost paid wrectty
by Airlines , Additional direct airline C P E represents an
estimate for airline-specific direct costs divided by airfine
enpmnemenia
Excludes gate delays, which are primarily due to airline
4480 1950
KP|#3-Net Revenues from DFW Cost Center
The chart to the side compares net
Net Revenues from OFVV Cost Center
revenues from the DFVV Cost Center.
Millions
There are no historical comparisons before
S80
$71.8 $74.3
FY because this mnetriowas created
$70
�
$69.3
from the new Use Agreement. The FY
$81.1
2013 net revenues budget ia$74.3million,
$60
a $5.1 million (7��96) increase from the �Y
` '
2012 Outlook. The increase is primarily
$50
attributable to increased perking and
$40
concessions revenues. The growth over
the Financial Plan is due to the higher
$30
concessions revenues; |eea operating
FY1 1 FY120L FY13FP FY13B
expenses; and debt service in FY 2013
compared tothe Financial Plan. See the DFVV
Cost Center Section for more detail.
Passengers — The FY 2013 Budget for passengers is 59.2 million, a 0.7 million (1.2%) increase
over the FY 2012 Outlook primarily due to the expectation that the economy will continue to
slowly recover. The budget compares to the Financial Plan.
18 1 DFW International Airport
IFY 2013 Adopted Budget I Executive Summary
Passenger statistics can be divided into several
categories as shown in the following table. 65
Originating passengers begin their trip at LJFVV
Destination passengers live elsewhere and fly to GO 57.7
DFVV for work or pleasure. People who travel
through DFVV to get to their final destination are 55
connecting passengers. Enp|anernents represent 50
all passengers boarding a plane at[)FVV.
45
40
Passengers
Millions
58.5 59.1 %2
Connecting
33.8
34.0
34.1
Variance Better
0.1
F`/12
FY13Fin'|
FY13
FY13Bvs. IFY13Bvs.
Passengers (in Milions)
Outlook
Plan
Budget
FY120L FY1 3FP
Originating
12.9
13.1
13.1
0.2 00
Destination
11.8
12.0
12.0
0.2 0.0
Connecting
33.8
34.0
34.1
03
0.1
Total Passengers
58.5
59.1
58.2
0.7
0.1
Enp|anemenha
293
29�6
29.6
0.4
0.0
Changes in these passenger metrics are important because they are the key revenue drivers for
parking (originating passengers), runoaeminna (enp|anemento), and rental car (destination
passengers) revenues. See further discussion in the DFVV Cost Center section.
19 DFW International Airport
FY 2013 Adopted Budget I Executive Summary
Revenues and Expenses Budget Overview
The following table summarizes 102 Fund revenues by cost center and 102 Fund expenses by
cost category with Net Revenues being the amount transferred to the DFW Capital Account.
Total Revenues
672
738.6
728
Variance Better
FY12
FY13Finl
FY13
FY13Bvs.
FY13Bvs.
Operating Expenses
358.4
363.7
355.8
(5.4)
Revenues
Debt Service
253.2
313.8
298.8
Airfield Cost Center
$130.6
$138.0
$137.8
$7.3
($0.1)
Terminal Cost Center
138.5
177.2
1671
28.6
(10.2)
[>FVV Cost Center
256.5
258.4
282.2
5.8
3.8
PFCoACFCe
147.3
165.0
161.8
14.5
(3.2)
Total Revenues
672
738.6
728
Expenses
Operating Expenses
358.4
363.7
355.8
(5.4)
7.9
Debt Service
253.2
313.8
298.8
Total Expenses
G
Net Revenues
Budgeted airfield and bannina| revenues for FY 2013 are higher than the FY 2012 Outlook
phnnah|y due to increased costs and debt service in these cost centers. However, terminal
revenues are lower than what was assumed in the FY 3013 Financial Plan phnnah|y because
debt service is |mvver than the Financial Plan. See more detailed information in the Airline Coot
Center section of this document.
Budgeted Passenger Facility Charge (PFC) and Customer Facility Charge (CFC) revenues are
used hz pay eligible debt service. PFC/CFC revenues are higher than the FY 2012 Outlook and
lower than the Financial Plan due to higher eligible debt service compared the Outlook and
lower eligible debt service compared to the Plan. See more discussion on debt service and use
ofPFCe/CFCoin the Operating Expense Summary.
FY 2013 Net Revenues are budgeted to be higher than the FY 2012 Outlook because of
increased parking revenues and a positive impact from OFWs contribution to terminals per the
Use Agreement offset bv increased debt service expenses. The growth over the Financial Plan
is primarily due to lower debt service.
Annual 102 Budget Comparisons and Walkforward
The following hsbka compares the Annual 102 Fund Budget (FY 2013 Budget) with the FY 2012
Outlook and FY 2013 Financial Plan. The Budget request for FY 2013 includes $5 million of
contingency outside the rate base. This contingency may only be accessed with Board
approval. This is consistent with the approach taken inFY 2D12.
20 1 DFW International Airport
FY 2013 Adopted Budget I Executive Summary
21 1 DFW International Airport
Variance Better
FYI FY13Fin'|
FYI
FYI 3Bvs.
FYI 3Bvs.
Annual Budget (in Mllions) Outlook Plan
Budget
FY120L
FYI 3FP
Operating Expenses $350.4 $3637
$355.8
(B5.4)
$7.9
Debt Service 2532 3138
298
Total Budget $603.6 $677.5
$654.6
Contingency Outside Rate Base
Total Budget With Contingency
Major changes between the FY 2013 Budget and the
FY 2012 Outlook and
how they impact the
[]FVV Cost Center and the Airline Coot Centers are
summarized below.
The descriptions of
these changes are discussed in the Operating Expenses section.
Budget Category (in Millions)
Total oFm
Airline
FY 2012 Outlook
$350.4 $142.0
$ano.*
Budget reductions
Rrhrement enhancement program
(n,n) (2.0)
(J.o)
Lhi|ity/energycouts
(17) (02)
(1.5)
owtsuumem remote busing
(1*) (1*)
Demolition m unusable buildings
(1N («A)
(06)
Decrease inContingency
Total budget reductions
(10.3) (4.3)
(6.0)
mosulamn/fixwdinormases
Terminal Ewbiotenonoe
on
oo
Nrfieldpamt removal
10
1.0
Healthcare
0.0 02
VA
Bus contract inflation
11 1.1
Defined benefit plan
1.0 0.4
oe
Property & casualty insurance
on 0.3
0.6
Gkylirmmntract
0,6 0.6
CCTvmuintenonce
0,8 02
n*
Total ,wsu/atnryffoxedincreases
6.4 2.8
x.m
Merit, unnua/mauvn& vacancy factor
3.3 /.x
2.0
atrategicInuvv program increases
Expanded international marketing
11
1.2
ombo| Entry marketing
0.4
0.4
VVheelcxairassistanoe - rennmo|o
o*
o*
Total strategic/now program increase
2.0 0.0
2.0
TRIP related
Terminal parking wpynnding
0.4 oA
Terminal ramp monitoring
oA
04
Total TRIP related
mo n.*
0.4
Other Increases
Restore deicing budget
1.6
16
Restore fire-training budget
OA 0.1
0�3
Lighting systems
oo 0,2
Va
Other, net ("*000.000 each)
10 O
Total other increases
as 0.9
2.6
Net Increases
5.7 1.1
4�6
Budget before Operating Reserve
356.1 143.1
Decrease inOperating Reserve
Fv2013 Expense Budget
21 1 DFW International Airport
FY 2013 Adopted Budget I Executive Summary
Capital Programs and Debt Financing
DFW has two capital accounts, the Joint Capital Account which requires both DFW and airline
approval to access funds and the DF\A/ Capital Account which OF\8/ may use at its sole
discretion. The Joint Capital Account receives funds from natural gas roya|ties, gnants, debt
proceads, and interest income on the available cash balances. The DFVVCapital Account is
funded from net revenues from the OFVVCost Center. Qrants, debt proceeds (for commercial
development) and interest income.
The largest component ufOFVVacapital program is the Terminal Hmnevva| and Improvement
Program (TR|P)in the Joint Capital Account. The TRIP is budgeted at$2.D billion over the next
G years (see chart). As of June 30. 2012. DFVVhas awarded $8741 million in contracts for
TRIP. The TRIP is preapproved as pad of the Airport's Use Agreement. Also included in the
Joint Capital Account is0W21.2 million of various other projects vvhiohDFVVhasreneivedair|ine
majority in interest (K8||) approval. These funds will be spent through FY 2016. Additionally,
DFVVhas o large number of additional capital projects currently underway and funded from the
DFVVCapital Account. DFVVs capital program is discussed in detail in the Capital section and
in the Financial Plan.
MUions FY10 FY11 PM2 PM3 FY14 FY15 FY16 FY17 Total
Terminal A $479
Terminal E $536
Terminal B $424
Terminal C $500
DFVV expects to issue bonds hu fund a significant peroentagmoftheTR|PmndthmoUherp jemts
included in the Joint Capital Account. Although the financing plans for FY 2013 one still
pnm|)nninery, management projects that approximately $700 million of new debt will be issued
during the fiooa| year. In mddition, certain bonds relating to construction mfGky|ink and Terminal
D may be refunded inFY2O13.
Natural Gas Revenues — The Use Agreement requires natural Qea royalties to be deposited
into the Joint Capita}AcoounL Estimated natural gas royalty revenues for FY 2013 are $5
nni|\ion, which is approximately the same amount DFVV is forecasted to receive in F`/ 2012.
OFVValso receives fees for pipm|ine, property and surface use fees from natural gas drilling and
piping activity. These are considered Gross Revenues of the Airport per the Bond Ordinances
and are included aa Commercial Development revenues in the OFW Cost Center.
22 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
Airline Cost Centers
Airfield Cost Center
The following table compares Airfield Cost Center revenues and expenditures for the FY 2012
Outlook, the FY 2013 Financial Plan, and the FY 2013 Budget. Note that revenues equal
expenses in this coat center in all periods. Revenue variances to the FY 2012 Outlook are
explained below, See the Operating Expenses section for expenditure variances.
Variance
Airfield CC FY 120L FY13FP
Revenues
Landing Fees
Other
Total Revenues
Expenditures
Operating Expenses
Net Debt Service
Total Expenditures
Net Airfield Revenue
16] 11.0 18.8 2.5 7.6
671 711 70.4 (3.3) 0.7
Note: FY1a Outlook includes True-Up Adjustment o/$7M.
The Airfield is e residual coed center with landing fees as the balancer. The table on the
following page compares Airfield Cost Center revenues and expenditures for the FY 2012
Outlook, the FY 2013 Financial P|an, and the FY 2013 Budged showing the landing fee
revenues necessary to cover budgeted net airfield costs.
23 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
Revenues
Aircraft Parking
Corporate Aviation
Fuel Facility
OPS
Transfer from DFW Cost Center
0.2
0.4
0.1
(I1)
Variance B
1.8
FY12
FY13
FY13
FY13Bvs.
FY13Bvo.
Airfield CC (in Millions)
Outlook
Fin'l Plan
Budget
FY120L
FY13FP
Expenditures
(D2)
(0.5)
5.9
(lD
8.4
Operating Expenses
$67.1
$71.1
$70.4
($3.3)
$0.7
Net Debt Service
635
670
675
Total Expenditures
1306
138
1379
73
Revenues
Aircraft Parking
Corporate Aviation
Fuel Facility
OPS
Transfer from DFW Cost Center
0.2
0.4
0.1
(I1)
A0.3\
1.8
1.9
2.0
0.2
OD
5'4
5.8
5.5
01
(0.1)
2.8
3.1
2.6
(D2)
(0.5)
5.9
(lD
8.4
2.5
8.4
Total Revenues before Landing Fees 16`1 11.0 18.6 2.4 76
Landing Fees
Note: FYI 2Outlook includes True-Up Adjustment v,$7V
Landing Fee Revenues
The FY 2013 landing fees budget is $118.3 rniUion, on increase of $4.9 million (4.396) from the
FY 2012 Outlook primarily due to the increases to net debt service and operating expenses
charged to the airfield. The FY 2013 threshold adjustment transferred from the DFVVCost
Center offsets the FY2D12adjustments.
Other Airfield Revenues
Other airfield revenues include threshold adjustments transferred from the OFVV Coot Center
Corporate Aviation (CA) fees, and the fuel hann fees paid by the airlines to cover debt service
and overhead of the fuel farm. Fuel farm fees increase annually at the rate of inflation.
CORPORATE mi��N
----
24 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
Landing Fees and Landed Weights
The charts compare landing fees and landed weights for the FT 2011 Aotua|s. the FT 2012
Outlook, the FY 2013 Financial P|an, and the FY 2013 Budget. The landing fee rata is
assessed per 1.000 pounds of nnax(nnurn approved landed weight for each specific aircraft as
certified by the FAA. Changes in landed weights will not affect total landing fees because [}FVV
must charge the airlines collectively for the cost to operate the airfield. Thua, an increase in
landed weights will )ovvor the average landing fee rete, and a decrease in landed weights will
cause the landing haa rate to increase.
Signatory landing fees are budgeted at $3.21 in FY 2013. a $0.29 (9.9Y6) increase from the FY
2012 Outlook. This will generate sufficient revenue hz pay for budgeted airfield costs. Landing
fees are lower than the FY 2013 Financial Plan by $0.24 (7.096) due to the FY 2013 threshold
adjustment and higher landed weights.
Cargo
Land in g Fee Rates (per 1,000 1 bs,)
$345 $321
Landed Weights
(in Billions)
FY11 Actual FY12 Outlook FY13 Fin'l Plan FYI 3 Budget
25 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
Terminal Cost Center
The following table compares Terminal Cost Center revenues and expenditures for the FY 2012
Outlook, the FY 2013 Financial P|on, and the FY 2013 Budget. Note that revenues equal
expenses in this cost center in all periods. Revenue variances between the FY2O13 Budget
and the FY 2012 Outlook are explained below. Gee the Operating Expense section for
expenditure variations.
Variance B
FY1 2 F\13 FY1 3 FY138ms. FY13Bvs.
Terminal CC (in Millions) Outlook Fir/|P|an Budqet FY120L FY13FP
Revenues
Operating Revenue
Terminal Leases
$74.2
$114A
$104.6
$30.4
($99)
F|G Fees
18.2
19.3
20.9
2.7
1.6
Turn Fees & Offioa Rents
9.2
11.0
10D
0.8
(1�1)
Other
1 1.7
(12
Total Operating Revenue
114.4
157.1
147.1
32.7
(mO)
Transfers
[]FVV Terminal Contribution
14.5
10.7
8.6
(59)
(2.1)
Joint Capital Transfer
24.0
20.0
20.0
UO
Total Transfers
38.5
30.7
6
2.1)
Total Revenues
152.9
187.8
175.7
228
21
Expenditures
Operating Expenses
141.3
145.5
142.4
(1.1)
3.1
Net Debt Service
11.6
42.3
3
1
Total Expenditures
152.9
1878
175.7
2
121
Net Terminal Revenue
The Terminal iaeresidual cost center with terminal leases as the balancer. The table on the
following page compares Terminal Cost Center revenues and expenditures for the FY 2012
Outlook, the FY 2013 Financial P|on, and the FY 2013 Budget showing the terminal lease
revenues necessary to cover budgeted net terminal costs.
26 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
Variance B
Terminal CC (in Millions) Outlook Fin'l Plan Budget FY120L FY1 3FP
Expenditures
Operating Expenses
Net Debt Service
Total Expenditures
Revenues
Operating Revenue
F|SFmam
Turn Fees &Office Rents
Other
Operating Revenue before Leases
Transfers
DFVVCortribu1ion/F|C Credit
Joint Capital Transfer
Total Transfers
Total Revenue before Leases
Terminal Leases
TermmimwkLeasmm
1413 14&5 142'4 (11) 3.1
1529 1878 1757 8 2.2
18.2 193 20.9 27 1.6
9.2 11�0 10�0 08 (11)
The FY2013 terminal lease budget ia$iO4.G million, a$3U.4 million (41.O%) increase from the
FY 2012 Outlook due primarily to increases in net debt service charged to the tarmina|n,
operating costs, a reduced Joint Capital Transfer, and
a reduced DFVVterminal contribution resulting from
AK8R'a rejection of its terminal related debt in u
bankruptcy. Terminal lease fees are charged to
airlines based on the budgeted direct and allocated
costs to operate the terminals. Total terminal
operations and maintenance cost, including HVAC
and other utilities for all 5 tarnnina|o, are divided by
leasable square feet to calculate an average lease
rate per square foot. American Airlines pays directly
for the maintenance costs of Terminals /\ and C.
These costs are added into the numerator of this formula to get the fully loaded average rate.
American Airlines receives rent credit for their costs. The amount of the rent credit was
negotiated os part of the Use Agreement ($3G.O million inFY2U13).
Average Terminal Rents before Credits
The chart below compares average terminal rents before credits for the FY2U11Actuals,the
FY2O12 Outlook, the FY2O13 Financial Plan, and the FY2O13Budget. The increase inthe FY
2013 Budget compared to the FY 2012 Outlook is due to increases in net debt service charged
to the ternnina|a, increases in cosdm, a reduction of $4 million in the transfer credit from the Joint
Capital Account compared to FY2O13aadescribed in the Use Agreement, and a reduced C>FVV
27 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
terminal contribution resulting from AMR'o rejection of its Facility Improvement Corporation debt
in bankruptcy.
Average Terminal Rents before Credits
per square foot
Federal Inspection Services (F|S)Fees
TheFl8 budget for FY 2013 is $20.9 million, o $27 rni|Umn (14.896) increase from the FY 2012
Outlook due to increased terminal costs. Costs are allocated to the F|S based on its percent
share of terminal square footage. The rate for F|G per international passenger clearing cuatmrna
at OFVV is expected to be $8.83, compared to a rote of $7.76 in FY 2012. |ntarnodmno| F|S
passengers are expected to be 2.42 million in FY 2013 compared to 2.33 million in FY 2012.
Turn Fees
The turn fees budget for FY 2013 is $10.0 million, a $0.8 million (8.796 ) increase from the FY
2012 Outlook. Turn fees are paid by airlines for common use gates in Terminals D and E in lieu
of permanently renting space. Per the terms of the Use Agreement, turn fees must increase at
the same percentage as terminal rates.
Other Terminal Revenues
Other terminal revenues include TSA rents, concessions (] & K8 reimbursements, catering Noea,
and allocable miscellaneous DpG revenues. Concessionaires are required to reimburse the
Airport (for Terminals B. D and E) and American Airlines (for Terminals A and C) for the
allocated maintenance cost per square h»ut of the terminals. The decrease in the FY 2013
Budget compared to the F/ 2012 Outlook ie due to lower non'aidineternnina| related revenues
and reduced concessions 0 & M reimbursements.
Transfers - Joint Capital Account Transfer
Per the terms of the Use Agreement, an annual transfer is made from the Joint Capital Account
to the Terminal Cost Center h» subsidize terminal rates. The annual transfer was $28 million in
FY 2011 and will be reduced by $4 million each year until it is phased-out completely in FY
2018. Accordingly, the FY2O13 amount ie$2Omillion.
Transfers - DFW Terminal Contribution
Per the terms cf the Use Agreement, DFVV pays for a portion of the terminal cost. This amount �
is based on DFWo proportionate share of expenses for common use and vacant space in the �
terminals. From a oust center abandpoint, this contribution is shown as m source of cash in the �
�
28 U }FV International Airport �
�
FY 2013 Adopted Budget I Airline Cost Centers
Terminal Cost Center and a use of cash for the OFVV Cost Center. OFVV can reduce its
contribution iothe Terminal Cost Center by leasing more space to other airlines or tenants and
by reducing costs in the terminals. The C>FVVterminal contribution was reduced by $5.9 million
in FY 2013 compared to FY 2012 primarily as a result of AMR'm rejection of its Facility
Improvement Corporation debt in bankruptcy.
Summary of Airline Costs
The following table compares the summary ofairline
2013 Financial P|an, and the FY 2013 Budged on a
-_-_- Accountino ~ Princinles) '--_' basis. The
difference between the Use Agreement basis and
the GA\P basis is phnnorik/ related to prior year
true-ups- These true-ups are reflected as a
reduction/addition in airline coat for the Use
Agreement in the year that the airlines receive/pay
for the true-up; however for GAAP, these true-ups
are naUoded in the year earned. Payments tothe
airlines for the Air Service Incentive Program (AG|P)
are made from the DFVV Capital Account and are
accounted as rebates tothe airlines for both a Use
�nrpp,n�v�pn� /��/�� �pni� These . .�.-__.. _- -- ' - -___� ..-__ ,-'-__ _-
not part of the 1O2 Fund however.
costs for the FY 2012 Outlook, the FY
Use Agreement and GAAP (Generally
Variance B
FYI FYI FYI FY138xo. FY13Bvo
Airline Revenue/Costs Outlook Fi 'l Plan Budget FYI 20 L FYI 3FP
Airline CosVRmvenue- Use Agreement
Landing Fees
Terminal Leases
FISFeea
Turn Fees & Terminal Office Rents
Aircraft Parking
Total Airline Revenue/Cost
$104.5
$127.0
*119.8
$14.8
C$7.71
74.2
114.4
104.8
30.3
(9.9)
18.2
19.3
20.9
2.6
1.5
9.2
11.0
10.0
07
(1.0)
Less ASIP
Airline Cost/Revenue - Use Agreement 196.1 260.5 243.8 47.7 (16.8)
Reconciliation to GAAPBmois
Add: Prior year True-up
8.9 D O EiS
29 1 DFW International Airport
FY 2013 Adopted Budget I Airline Cost Centers
Cost Per Enplanement (CPE) Calculation
The following table shows the passenger airline cost per enplanement calculation and compares
the CPE for the FY 2012 Outlook, the FY 2013 Financial Plan, and the FY 2013 Budget
between on a Use Agreement and GAAP basis. This KPI only includes passenger-related
airline revenues (i.e., costs) and excludes cargo and general aviation revenues. The difference
between the Use Agreement basis and the GAAP basis is primarily related to prior year true-
ups. These true-ups are reflected as a reduction/addition in airline cost for the Use Agreement
in the year that the airlines receive/pay for the true-up; however for GAAP, these true-ups are
reflected in the year earned.
Variance Better(Worse)
FY1 2 FY13 FY1 3 FY13Bvs. FY13Bvs.
Cost Per Enplanement (in Mllions) l2) Outlook Fin'l Plan Budget FY120L FY1 3FP
Passenger Airline Enplanements(l) 29.3 29.6 29.6 0.3 0,0
Passenger Airline CPE - Use Agreement Basis
Airline Cost/Revenue
$206.7
$272.2
$254.8
$14.8
($73)
Less: Cargo and GA Landing Fees
(9.8)
(10.0)
(10.4)
(0.6)
(0.4)
Add Back: Cargo and GA true-up and Threshold adj.
1.2
0.0
0.7
(0.5)
0.7
Total PAX Airline Revenue
198-1
262-1
245.1
13-7
(7.4)
Less ASIP - Passenger Airlines
(10.6)
(11.6)
(11.0)
(0.4)
0,6
Total PAX Airline Revenue post ASIP
$187.5
$250.5
$234.1
$13.3
($6.8)
CPE - Use Agreement Basis (2)
$6.41
$8.48
$7.91
($1.50)
$0.57
Passenger Airline CPE - GAAP Basis
Total PAX Airline Revenue post ASIP
Add Back: Prior Year True -Up
Total Passenger Airline Cost/Revenue
CPE - GAAP Basis (2)
'General Aviation enplanements are excluded from CPE calculation
'Actual races, not in milions
30 1 DFW International Airport
$187.5 $250.5 $234.1 $13.3 ($6.8)
8.3 - - 8.3 0.0
195.8 250.5 234.1 21.6 (6.8)
6.69 8.48 7.91 (1.22) 0.57
FY 2013 Adopted Budget I DFW Cost Center
DFW Cost Center Revenues and Expenses
The table below compares the FY 2012 Outlook, the FY 2013 estimates contained in the FY
2012 Financial Plan, and the FY 2013 Budget for the DFW Cost Center. Net revenues from the
DFW Cost Center are transferred to the DFW Capital Account at the end of the fiscal year. If
net revenues exceed $63.2 million in FY 2013, then DFW will share 75% of the excess with the
airlines in FY 2013 as part of the threshold adjustment. Revenue variances are discussed in the
rest of this section. Expenditure variances are covered in the Operating Expenses section.
Revenue Management Revenues
DFWs Revenue Management Division manages 4 business units that strive to maximize net
revenues (parking, concessions, rental car, and commercial development). The chart to the
31 J DFW International Airport
Variance Better(Worse)
FY12
FY13
FY13
FYI 3B vs.
FYI 3B vs.
DFW Cost Center (in Millions)
Outlook
Fin'l Plan
Budget
FY120L
FY13FP
Revenues
Revenue Management Revenues
Parking
$111.3
$115.8
$115.9
$4.7
$0.1
Concessions
54,5
48.5
55.6
1.1
71
Rental Car (RAC)
27.4
28.4
28.0
0.5
(0.4)
Commercial Development
34.4
312
33.5
(0.9)
0.3
Total Revenue Mgmt Revs
2277
225.9
233.0
5.4
7.1
Employee Transportation
11.0
12.5
124
1,5
0.1
Taxis and Limos
8.1
7.7
8.0
(0-1)
0.3
Lhlltes & Miscellaneous
6.2
6.0
6.2
0.0
0.2
DPS Allocation
1A
1.4
1.3
(0.1)
(0.0)
interest income
21
5.0
1.2
(0.9)
(18)
Total Revenues
256,5
258.4
262.2
5.8
3.8
Expenditures
Operating Expenses
111.5
115.6
112.5
(1.0)
3.1
Net Debt Service
25.9
33.5
30.8
(4.8)
2.8
Total Expenditures and Debt Service
137.4
149.1
143.2
(5.8)
5.9
Gross Margin -DFW Cost Center
119.1
109.3
119.0
(0.1)
9.7
Less: TerminalContributions
14,5
10.7
8.6
5.9
2.1
Less: Skylink
35.3
37.6
36.1
(0.8)
1-5
DFW Cost Center Net Revenues
69.3
61.1
74.3
5.1
13.3
Lew FY12 rate reduction applied in FY12
(5.9)
0,0
0.0
5.9
0.0
Less; FYI 3BThreshoidAdjustmeryt
0.0
0.0
(8.4)
(8.4)
(8.4)
Net Revenues to the DFW Capital Account
63.4
61.1
66.0
2.6
4.9
Revenue Management Revenues
DFWs Revenue Management Division manages 4 business units that strive to maximize net
revenues (parking, concessions, rental car, and commercial development). The chart to the
31 J DFW International Airport
IFY 2013 Adopted Budget I DFW Cost Center
Parking Business Unit
Background — The Parking Business Unit (PBU)isOF\8yomost significant smurcaofnon'oidine
revenue. Customers are charged parking fees based on the length of stay and the parking
facility used.
DFW Parking Space and Rate Summary
Express Lots
No. of
Spaces
�
8,081
Post TRIP
Remote Lots
Parking
Closed for
Spaces
Renovation
Parking Products
Spaces
Renovation
Available
8pecea»` Current Daily Parking Rate )
Terminal Lots
m/a
n1a
n/a
$18 toll tag; $19 cash or credit card
A(3structures)
5.039
(1.677)
3.362
7.700
e(3structures)
3.524
(860)
2.664
3.524
C (4 structures)
5.781
5.781
5.781
O(1 structures)
7.938
-
7.938
7.938
E (3 structures)
4.050
-
4.050
4.050
Infield (uncovered)
1,842
Total Terminals
28,17*
(a� �881)
2s�o93
50,598
Express Lots
8,08
` �
-
�
8,081
�
8,00
Remote Lots
4.864
4,004
*.864
Intra-day
ma
ma
ma
ma
Valet
m/a
n1a
n/a
n/a
Drop-off
ma
n/a
nia
n/a
Puss'th,mughs
mo
mo
nne
ma
Total Public Spaces
41,119
38,238
Employee Parking 7,520 7,520 7,520
(1) Included mrr2noFinancmRan
(2) Includes sales tax.
$10 uncovered; $12 covered
$8 uncovered
$2hzn7 (up to6hours)
$25 (uses existing parking facilities
$1 (8-30 minutes)
$1 toll tag; $2cash
OFVV collects a privilege fee of 1096 (of
sales) from off-Airport parking and valet
providers The Airport contracts directly with
athivd party to provide m OFVV branded valet
aen/ioa DFVV Valet will be priced et $25 per
day plus sales tax in FY 2013. This is an
increase of $2 per day from FY 2012. The
PBU is also responsible for busing
32 1 DFW International Airport
FY 2013 Adopted Budget I DFW Cost Center
customers from the parking lots tn the terminals (Express and Remote products) and between
the terminals (Terminal Link).
The chart below the Proposed Vehicle Parking Fees for FY 2013.
Proposed Vehicle Parking Fees (2)
(n Including c»vv Business Center
(2) All Parking fees, excluding valet parking, include sales tax. The sales tax is based on applicable tax jurisdiction
FY 2013 Budget — The FY2013 parking revenue budget ia$115.B million, a$4.5 million (4.196)
increase from the FY 2012 Outlook. This reflects on increase in originating passengers, a $1
increase for Express covered and uncovered rates, and a $1 increase for Terminal cash and
credit card transactions. The FY2O13 Budget ia$O.1 million (O.OQ96) higher than FY2O13inthe
FY 2012 Financial Plan.
Parking Revenue per Originating Passenger The primary drivers for parking revenues are
originating paosenQers, parking privae, and average length of stay. The goal is to maximize
revenue per originating passenger. The increase in FY 2013 Budget versus the FY 2012
Outlook is due to rate increases and increased originating passengers. This KPI is slightly below
the FY 2013 Financial Plan prinnohk/ due to the TRIP impact in the FY 2013 Budget which was
not reflected in the FY2O13 Financial Plan.
FY 2013 arriount cDrrected from fviancW plan
33 1 DFW International Airport
Express
Express
Duration
Terminal V)
Covered
Uncovered
Remote
O min -8 min with To|ltoo
$1
$1
T,
$1
O min -8min
$2
$2
$2
$1
8 min -3Omin
$1
$1
$1
$1
3D min -2hour
$2
$2
$2
$1
2-4hours
$5
$3
$3
$2
4-Ghours
$7
$4
$4
$3
8-24 hours with Toll Tag
$18
$13
$11
$8
G-24hours
$20
$13
$11
$8
(n Including c»vv Business Center
(2) All Parking fees, excluding valet parking, include sales tax. The sales tax is based on applicable tax jurisdiction
FY 2013 Budget — The FY2013 parking revenue budget ia$115.B million, a$4.5 million (4.196)
increase from the FY 2012 Outlook. This reflects on increase in originating passengers, a $1
increase for Express covered and uncovered rates, and a $1 increase for Terminal cash and
credit card transactions. The FY2O13 Budget ia$O.1 million (O.OQ96) higher than FY2O13inthe
FY 2012 Financial Plan.
Parking Revenue per Originating Passenger The primary drivers for parking revenues are
originating paosenQers, parking privae, and average length of stay. The goal is to maximize
revenue per originating passenger. The increase in FY 2013 Budget versus the FY 2012
Outlook is due to rate increases and increased originating passengers. This KPI is slightly below
the FY 2013 Financial Plan prinnohk/ due to the TRIP impact in the FY 2013 Budget which was
not reflected in the FY2O13 Financial Plan.
FY 2013 arriount cDrrected from fviancW plan
33 1 DFW International Airport
FY 2013 Adopted Budget I DFW Cost Center
Concessions Business Unit
During Py2O12.OFW awarded all concessions contracts for Terminal A; awarded the VVI-Fi
contract; rebid and awarded concessions contracts for Phase 1 and 2 of Terminal B and Phase
3of Terminal E; and rebid Phase 2of Terminal E During F`/2O13.l]FVV will award Phase 2of
Terminal E. bid 29 retail locations in Terminal D, and bid the television service contract. The
Airport anticipates that revenues per enp|anement will increase substantially as the new
concessions open.
FY 2013 Budoek— The FY 2013 concessions budget is $55.6 rnUUmn. o $1.1 million (296)
increase from the FY 2012 Outlook due tothe net impact of increasing enp|omementa and the
opening of new concessions in Section A of Terminal A. partially offset by additional terminal
sections under construction. All of the concessions in Section /4of Terminal A will reopen inthe
second quarter of FY 2013 Section B of Terminal Awill close for construction in the second
quarter ofFY2013and Sections of and Evxi|| be closed for TRIP construction during FY
2013.
provide new concession offerings to
passengers. |tio higher than the Financial Plan
due to a lower expected negative impact from TRIP
34 1 DFW International Airport
FY 2013 Adopted Budget I DFW Cost Center
Rental Car Center (RAC) Business Unit
DFW management has very little control over rental car company activities. |t assists the RAC
companies where possible and maintains the RAC facility to high standards. Most RAC patrons
are business travelers. RAC sales and OFVVrevenues tend to follow the economy. DFW
revenues can rise or fall based on the number of DFVVdestination peooenQgre, the percentage
of destination passengers renting oero, the average stay per renter, and the average daily prime
charged for the cars.
FY 2013 Budget — The FY2O13 rental car revenue budget he$2B million, a$O.5 million (UO3Y6)
increase from the FY2O12 Outlook due to increases in destination passengers projected for FY
2013. The FY 2013 Budget is $0.4 million worse than the F`/ 2013 projection in the FY 2012
Financial Plan due to the not impact of higher transaction days and o lower average daily rate
assumed in the Plan. All other factors are assumed to stay constant with the FY 2012 Outlook
because management has no control over these factors.
RAC Revenues per Destination Passenger
This KP| measures the amount of percentage
$2.20
rent paid by the nardo| car companies to DPVV
divided by destination passengers (i.e.,
$2.10
passengers from other cities [}
��thatOyto FVV
$2.00
for business or pleasure). The FY 2013
*190
Budget for RAC revenues per destination
$180
passenger is projected to be slightly higher
than the FY 2012 Outlook primarily due to
*1ro
�
increases in destination passengers in FY
$1 vo
2013.
$150
35 1 DFW International Airport
Rental Car Revenue per Destination Passenger
$2.m
FYI
Actual
$1.98
pnc p`nz
Outlook Fin'l Plan
$1.96
pvo
Budget
FY 2013 Adopted Budget I DFW Cost Center
Commercial Development Business Unit
Commercial development revenues include ground |eaaeo, foreign trade zone tariff and facility
rents generated from non-terminal Airport facilities, and property and surface use fees primarily
from natural gas drilling. Multi-year lease agreements are negotiated with tenants onosquare
foot or acre basis. Some facilities such as the Hyatt Regency Hotel and Beer Creek Golf
Course also have percentage rent components.
DFVV is currently in the development process for the new Southgate Plaza project that will
include nestouronta, retai|, office and possibly a select service hotel. A|so, e development
process in underway for o new convenience matei| project at Foundery' Plaza that may include
fueling station and food court Other future development opportunities include land around the
new DART station on the southeast side of the Airport and several induotria|, oMioe, and mixed
use commercial sites on the north and south sides nf the Airport.
The hey drivers for commercial development revenues are acres developed and the average
ground rental rate. Approximately 40% of the ground lease revenue is based on negotiated
rates and OU% on the airport services ground rental rate. The airport services ground rental rate
per acre increases with inflation and will be$28.317}nFY2O13.
FY 2013 Budget — The FY 2013 oornnnerda| development revenue budget is $335 million, a
$OS million (10.2Y6) decrease from the FY 2012 Outlook due primarily to net impact of $0.4
million in contract revenues that end in FY 2012. $0.4 million reduction in the AA Hangar
contract for FY 2013 per an agreement reached with DFVV in 2012 in exchange for AA
extending the length of lease terms, and $03 million of one-time revenues received during FY
2012 from Chesapeake for off-airport property pipeline fees, offset by $0.5 million increase in
average ground rental rates. The FY 2013 Budget is $0.3 rni||inn higher than the FY 2013
Financial Plan.
36 1 DIFW International Airport
FY 2013 Adopted Budget I DFW Cost Center
Other DFW Revenues and Expenses
The fees charged in this category are established to recover costs (except interest income).
Certain categories like taxi fees are regulated such that DFW is supposed to charge break even
prices. Due to the new cost allocation methodologies contained in the Use Agreement, a couple
of these cost centers are not fully recovering their costs. VVhena there are significant
differences, management has elected to get to break even over a number of years to keep price
increases at reasonable rate. There are noyear-end reconciliations or true-ups in these cost
centers.
Employee Tramsportatimm — DFW charges fees ho employees for providing transportation from
the parking lots to the terminals. Many times the companies or airlines pay these fees for their
employees. The FY 2013 Budget is$12.6million, a $1.6 (14.5Y6) increase from the FY2O12
Outlook due |o the incremental cost associated with busing employees bzTerminal D (FY 2013
is the first full year).
Taxi, Limo and Shuttle Feem— These fees are paid by taxis, |imom, shuttles and other shared-
ride transportation companies that require airport access to drop-off and pick-up passengers.
The FY2O13 Budget ia$8 million. a $O.1 million (1.296) decrease from the FY2O12 Outlook due
to changes with North Texas To||xvay Authority (NTTA) that affect access fees.
Utilities & Mhsce|laneous — Thiarevenue category represents fees changed to non-airline
users ufutilities, HVAC, trash removal, water, and certain permit and accounting fees. Ub0v
charges to users are based on the cost to provide the services. The FT 2013 Budged is $6.2
million, and has remained the same am the FY 2012 Outlook.
DPS Revenues — The Department of Public Safety (DPG)
receives revenues from the TSA, badginA, five training and
other services. The FY 2013 Budget is $6.3 million, a $0.5
million (7.396) decrease from the FY 2012 Outlook due to a
reduction in hours and rates from the TSA Law Enforcement
Officer reimbursement program, offset by increased revenues
from the new Fire Training center reopening in the second
quarter ofFY2O13.
|ntmxestUnmpmnm — |nterest income includes interest earned on investments from the Operating
Revenue& Expense Fund, the month Operating Reserve, and Debt Service Reserve Fund,
and the Rolling Coverage Account. The FY 2013 inbanaot income budget is $1.2 million and
lower than the FY 2012 Outlook as interest rates projected to be lower in FY 2012. The P/
2013 Budged is a $3.8 million decrease from the FY 2013 Financial Plan due to lower interest
rates (1Y6 in the Financial Plan versus O.396 in the Budged),
SkyUUnk— Expenses related to Shy|inh are covered in the OFVVCost Center. The FY 2013
Budget is $36.1 million, a $0.8 million (2J96) increase from the FY 2012 Outlook due to
inflationary increases in the contract.
Terminal Contribmtkmms— Per the honns of the Use Agreement, DFVV pays for o portion of the
bannina| cost. The FY 2013 Budget is $0.6 million, a $5.9 million (40.7Y6) decrease from the FY
2012 Outlook primarily as a namu/t ofAK8R's rejection of its Facility Improvement Corporation
debt inbankruptcy.
37 1 DFW International Airport
0
FY 2013 Adopted Budget I Operating Expenses
FY 2013 Expense Budget by Major Cost Driver
The FY 2013 Budget is $654.6 million, an increase of $51.0 million (8.4%) from the FY 2012
Outlook. A walkforward between the FY 2012 Outlook and the FY 2013 Budget follows:
FY12 FY13 Fin') FY1 3
Annual Budget (in Millions) Outlook Plan Budget
Variance Better (Worse)
FY13B vs. FY1 313 vs.
FY120L FY13FP
Operating Expenses $350.4
$363.7
$355.8
($5.4)
$7.9
Debt Service 253.2
313.8
298.8
(45.5)
15.0
Total Budget $603.6
$677.5
$654.6
($51.0)
$22.9
Contingency Outside Rate Base
$5.0
Total Budget With Contingency
$659.6
Operating Expense Budget Walkforward
Operating Exps (in Millions)
Total
DFW
Airline
FY 2012 Outlook
$350.4
$142.0
$208.4
Budget reductions
(10.3)
(4.3)
(6.0)
Regulatory/fixed increases
6.4
2.8
3.6
Merit, annualization & vacancy factor 3.3
1.3
2.0
Strategic/new program increases
2.0
0.0
2.0
TRIP related
0.8
0.4
0.4
Other, net
3.5
0.9
2.6
Net Increase in Budget
5.7
1.1
4.6
Budget before Operating Reserve
356.1
143.1
213.0
Increase in Operating Reserve
(0.3)
(0.1)
(0.2)
FY 2013 Expense Budget
$355.8
$143.0
$212.8
38 DFW International Airport
FY 2013 Adopted Budget I Operating Expenses
Detailed Operating Expense Budget Walkforward
39 1 DFW International Airport
Budget Category (in Millions)
Total
DFW
Airline
FY 2012 Outlook
$350.4
$142.0
$208.4
Budget reductions
A
Retirement enhancement program
(5.5)
(2.0)
(3.5)
B
Utility/energy costs
(11.7)
(0.2)
(1.5)
C
Outsource of remote busing
(1.4)
(1.4)
D
Demolition of unusable buildings
(1.0)
(0.4)
(0.6)
E
Decrease in Contingency
(0.7)
(0.3)
(0.4)
Total budget reductions
(10.3)
(4.3)
(6.0)
Regulatory/fixed increases
F
Terminal E Maintenance
0.6
0.6
G
Airfield paint removal
1.0
1.0
H
Healthcare
0.6
0.2
0.4
1
Bus contract inflation
1.1
1.1
J
Defined benefit plan
1.0
0.4
0.6
K
Property & casualty insurance
0.9
0.3
0.6
L
Skylink contract
0.6
0.6
M
CCTV maintenance
0.6
0.2
0.4
Total regulatory/fixed increases
6.4
2.8
3.6
N
Merit, annualization & vacancy factor
3.3
1.3
2.0
Strategic new program increases
0
Expanded international marketing
1.2
1.2
P
Global Entry marketing
0.4
0.4
Q
Wheelchair assistance -Terminal D
0.4
0.4
Total strategic/new program increase
2.0
0.0
2.0
TRIP related
R
Terminal parking wayfinding
0.4
0.4
S
Terminal E ramp monitoring
0.4
0.4
Total TRIP related
0.8
0.4
0.4
Other Increases
T
Restore deicing budget
1.6
1.6
U
Restore fire-training budget
0.4
0.1
0.3
V
Lighting systems
0.5
0.2
0.3
W
Other, net (< $250,000 each)
1.0
0.6
0.4
Total other Increases
3.6
0.9
2.6
Net Increases
5.7
1.1
4.6
Budget before Operating Reserve
356.1
143.1
213.0
X
Decrease in Operating Reserve
(0.3)
(0.1)
(0.2)
FY 2013 Expense Budget
$356.8
$143.0
$212.8
39 1 DFW International Airport
FY 2013 Adopted Budget I Operating Expenses
Note: The reference |eMenm in the previous table are cross- referenced to the vehamom
explanations in the Expense Comparison by Summary Account discussed further in this section.
A. Retirement Enhancement Program ($5.5) million
In FY 2013 [}FVV offered an enhancement of 3 - G months of wages,
oerviue, to retirement eligible employees who retina between June 1
This offer was accepted bv1O4employees. Costs for FY
2012 are estimated to be $2.1 million in incentive
payments. Savings in FY 2013 are estimated tobe$3.4
million in salaries and benefits. An additional savings of
$0.6 million in pension contributions will be realized in
FY2O14and beyond. These estimates are based onthe
assumption that 4096 of general employee positions
accepting the offer will not be bauhfi\|ed, or remain
vacant in FY 2013. None nfthe remote parking busing
ooaitiona m/iU be �||ad due to the out�ouncino of the
, _- _ ��— - filled �- _ -- _- —_�" '—
operation, and 10096 of the poohbuno in Parking Operations will
until the transition to the new Parking Control System is complete.
depending upon length of
and September 30, 3012.
be filled with temporary staff
B. 0ti|Nm/EmmrgyCostm ($1'7) million
Utility expenses will decrease from the FY 2012 Outlook due to lower gas and electric rates.
Electric odem are locked in through March 2013. with lower rates then )oohed in through March
2015. Natural gas rates are locked in through September 2013.
C,Outsource of Remote Busing
($1,4) million
DFVVwill outsource remote busing beginning October 1, 2012. This move will eliminate 84
positions. DFVVwill save $4.5 million in salaries and benefits. Contract costs will increase by o
net of$3.1 million in FY 2013.
Q. []mnmmUitiom of Unusable Buildings ($1.0) million
DFVVhas a number ofstructures, such as the Bank building on Carbon Road. the Knights of
Columbus (K of C) building on Block Lane and the former SkvChefaflight kitchen on West 33Y"
Street that have no possible future Airport use. The /\iqood plans to spend $1.0 million to
demolish the KofC and Bank buildings inFY2012. The FY2O13 Budget contains no money for
demolishing additional structures.
E. Reduction of Contingency ($0.7) million
DFVVmaintains a Contingency fund to auonmnnodaba unexpected expenses such as weather
events or legal expenses for the AMR bankruptcy that occur within a 5mua| year. In the past, this
Contingency fund was $2.5 million. For FY2O13the Contingency fund has been established at
$1.75 million, which represents about 1.5 days of operating expenses.
40 1 DFW International Airport
X. 2 Month Operating Reserve
FY 2013 Adopted Budget I Operating Expenses
($0.3) million
OFVVha required hn have aSD-day cash reserve for operating expenses. The budget inFY2O13
reflects a $0.3 million decrease in the Operating F|eaenx* because of budgeted expense
changes. In FY 2013, the actual reserve needs to be increased by $2.2 million due to a net cost
increase of $5.7 million and an account balance true-up of $0.7 million. In g budget to budged
comparison, the resulting Operating Reserve decrease ie$U.3million.
Operating Budget by Category
The following tables compare the FY 2012 Outlook with the FY 2013 Budget by expense
category. Variance explanations bv major coatdhverfuUowinthevva|hfowvard.
Variance Between
43 1 DFW International Airport
FY12
FY12
FY13
FY13
FY13Bva.
FY13Bvo.
Operating Budget (in millions)
Budget
Outlook
Fin'l Plan
Budget
FY120L
FY13FPlan
Benefits
61.5
60.3
62.0
59.6
0.7
2.4
Contract Services
113.9
113.0
120.8
122.3
(9.3)
(1.4)
ihUitieo
27.5
27.3
26.2
25.6
1.7
0.6
Equipmant& Supplies
14.1
12.8
13.6
15.0
(2.2)
(1,4)
Insurance
4G
4.4
5.1
5.3
(0.9)
(0.2)
Fuels
4.3
3.9
4]
4.2
(03)
(0.1)
GenenaiAdnnin &Other
SA
6.7
7.1
7.1
(0.4)
0.0
Contingency
2.5
2.5
2.5
1.8
0.8
0.8
Subtotal
3520
3479
3002
3536
Operating Reserve
25
2.5
3.5
22
0.3
1.3
Total Budget
43 1 DFW International Airport
FY 2013 Adopted Budget I Operating Expenses
Budget Wakfonvord (in millions)
Smls
Bens
Cunts;
Supp
U0
Fuels
km
G&A
Cont
Op Res
Total
FY 2012 Outlook
$117.0
$60.3
$113.0
$12.8
$27.3
$3.9
Major cost reductions
A Retirement Enhancement
(40)
(O.S)
(5.5)
B UU|ity/EnorgyComts
(1J)
(17)
C Oomourceo/Remote Busing
(11)
<14>
3.1
(1.4)
o Demolition «/ unusable buildings
<1,0Y
<1�0V
E Decrease in Contingency
U
Total Savings
�
Major cost increases
F Terminal EMaintenance
0.6
0.6
G Airfield paint removal
1.0
11V
H Healthcare
0.6
0.6
| Bus contract inflation
11
1.1
J Defined Benefit Plan
1V
1.0
M Insurance
nO
&e
L Skylink contract
86
0.6
m CCTV maintenance
OU
uO
N Merit, etc
3,3
3.3
O Intl marketing
12
11
P Global Entry
0.4
0.4
Q Whcelchmirusot
0.4
0.*
R ParNngVVayfindmg
oA
Ku
G Terminal E ramp monitor
0.4
0.4
T Restore deicing
1.0
10
U Restore fire training
0.4
0.4
V Lighting systems
V�m
O.m
VVOther
0.5
0.4
1'V
X Three month operating reserve
Total increases
33
18
72
22
OO
04
OS
04
VV
03
pY2013 proposed budget
$
Salaries and Wages
The FY2O13 salaries and wages budget io$1127million, a $4.4 million (3.8Y4) decrease from
the FY 2012 Outlook of $117.0 million due to savings from the Enhanced Retirement Program
of $4.6 million and from outsourcing remote busing of $3.1 nniUion, offset by a3.OY6 merit pool of
$2.2 rni||imn, onnua\izmtion of previously granted merit of $0.7 rni||imn, and net vacancy factor
and other changes of $0.4 million. The Budget includes funding for an incentive compensation
plan as reviewed by the Board's Executive Compensation Committee. It will be based on
DFVVs achievement of certain organizational goals and initiatives that will be developed and
published im November 2O12. The plan ie also based on individual performance.
Benefits
The FY2O13 benefits budget bs$59.6 million, a$07 million (1.2%) decrease from the FY 2012
Outlook. This is due to savings of $1.4 mU\\mn from outsourcing nynnob* busing and savings of
$0.9 million due to the Enhanced Retirement Program, offset by increases to the defined benefit
plan of $1O million and increases to healthcare costs of$O.8million.
44 1 DFW International Airport
FY 2013 Adopted Budget I Operating Expenses
Contract Services
Equipment and Supplies
The FY2O13 equipment and supplies budget is $15.0 rnU|ion. a $2.2 million (18.696) increase
from the FY 2012 Outlook of $12.8 million primarily due to restoration of the deicing budget
($1.6 million) and foul weather equipment ($0.2 million).
Utilities
The FY 3013 utilities budget is $25.6 million, a $1.7 million (].2%) decrease from the FY 2012
Outlook of $27.3 million due to decreases in electricity ($1.4 million) and natural gas ($0.3
million) rates for FY 2013.
Fuels
The FY 2013 fuels budget is $4.2 million, a $0.4 million (77%) increase from the FY 2012
Outlook of $3.9 million due to the restoration of the fire training budged.
Insurance
The Fy2O13 insurance budget is $5.3 million, a$O.B million (2OG%) increase from the FY2O12
Outlook of $4.4 million primarily due to increased premiums based on claims experience.
General and Administrative (G@&A)
The FY 2013 general and administrative budget is $7.1 million, o $0.4 million (6.0Y6) mcmaoae
from the FY 2012 Outlook of $6.7 million due to increased business development activity and
training costs.
Contingency
�
The FY 2013 Budget includes $1.75 million of contingency inside the rate base to be spent sd �
the CEO's discretion for projects and unforeseen events that come up during the fiscal year.
45 1 DFW International Airport
FY 2013 Adopted Budget I Operating Expenses
Operating Reserve
DFVVio required bm have a cash reserve for operating expenses. The budget inFY2O13
reflects a $0.3 million decrease in the (]pending Reserve because of budgeted expense
increases. In FY 2013, the actual reserve needs to be increased by $2.2 million due to a net
cost increase of $5.7 million and an account balance true-up of $0.7 million. In a budget to
budget comparison, the resulting Operating Reserve decrease is $0.3 million
Contingency Outside of Rate Base
Beginning in FY 2010, DFW began to add contingency outside of the rate base to the budget.
This is done so that the airlines do not have to pay for the contingency during the year inthe
rate base, but provides management with flexibility should costs rise unexpectedly and an
incentive to budget costs more accurately. Contingency outside the rate base io$5.O million in
FY 2013, which is the same as the FY 2012 Budget. This allows management the opportunity to
rnmhe investments in the DFVVCost centers during the yemr, if management foresees that OFA/
revenues will exceed the projections inc|udadinthebudQet. Management must obtain Board of
Directors' approval prior to using this contingency.
Net Debt Service Budget
The FY 2013 debt service budget is $137 million, a $31.0 million (29.3%) increase from the FY
2O12 Outlook and a $18.3 million (12.]%) decrease from the FY2O13 Financial Plan aashown
in the table on the next page.
Debt Service Millions)
FY12
Outlook
FY13
Fin'l Plan
FY1 3
Budget
Variance
FY13Bvs. FY13Bvs.
FY120L FY13FP
Debt Service and Coverage
"Exisdng'' Debt Service
$2442
$254.0
$253.1
($8.9)
$1.0
New Debt Service
0.0
37.8
26.2
(26,2)
11.5
PFkC Related Debt Service
0.3
22.0
19.8
(10.4)
2.4
Less Interest Income
2
1
Net Debt Service and Coverage
$253.2
$3138
$2988
$
$15,0
Offsets hu Debt Service
PFCs for Existing Debt Service
138.0
143.0
142.1
4.1
(0-0)
PFIC Transfers
93
22.0
106
10.4
Total Offsets
147.3
165,0
1618
14.5
3
Net Debt Service Paid by Hmha 8oae
$ Q
*
$
$18.3
For the $45.5 million increase in the FY 3013 Budget compared to the FY 2012 Outlook, $145
million (or 32%) is paid with PFCs and PRC t:mnsfena, raeu|Un0 in $31 million paid by the rate
base. Prior to the Use Agreement, OFVVinitiated a debt restructuring plan that |ovxenad airline
costs in the current year. As a part of the Use Agreement neAodadono, the airlines agreed in
return that debt service on existing debt, net of PFCa, would increase approximately $5 million
per year through FY 2020. The above variance on existing debt equals to approximately $5
million. New debt service is o naau|t of capital projects being completed during FY 2013 and
46 1 DFW International Airport
FY 2013 Adopted Budget I Operating Expenses
debt service beginning for those projects. The capital projects primarily relate to TRIP and
include terminal sections opening for Terminal A. Section A. Terminal E satellite facility, and the
parking garage for Terminal A. PF|C related debt service and the offsets ofPF|C transfers are
the same amounts and have noimpact tu the rate base.
Positions
The following table summarizes the hobg| number of operating and cmphm| positions assumed in
the FY 2013 Budget. Operating positions are paid out of the 103 Fund, Ga|oheo of capital
positions are capitalized and paid from the capital accounts. A summary of positions by
department ia included at the end of the Department section.
Positions Budget Reductions Budget
Operating
1.898
(97)
1.001
Capital
112
O
112
Total
2.010
2.082
1.813
The change in the number of positions consists ofa reduction of1O2 positions in Parking due to
the outsourcing of remote busing and CPCS implementation, somewhat offset by the addition of
3 positions in Public Affaina, which are replacing interne, the addition of 1 pad'dnne
Administrative Assistant in Legal, and the addition of1 Business Intelligence Architect inITS.
�
47y[]FVV International Airport �
�
FY 2013 Adopted Budget I Departments
Department Overview and Walkforwards
OFVV is organized into Okvieiona, which one comprised of Departments. Each Division page
includes a summary of the Division's major funobonsondmvva|hfonwmndofhheFY 2013 Budget
by major ooetdrk/er. The following table iao budget comparison byDepartment.
Public Affairs
Air Service Development
Airport Development
Legal
Audit Services
Executive Office
Contingency
Non Departmental
Total Operating Expenses
48 1 DFW International Airport
4`507
5.935
(1,428)
Variance Better (Worse)
2,400
FY12
FY13
FYI 3B vs. FYI
2 OL
642
Outlook
Budget
$
%
/ssetK1lamagement
$65.275
$67,997
($2.722)
(4.2Y�
Energy & Transportation Mgt.
57.338
56.982
356
0.696
Public Safety
60.531
59.184
1.347
2.296
Operations
10.257
10.853
(576)
(5696)
Planning
2.071
2.282
(211)
(10.296)
Environmental Affairs
4,962
5,108
Operations
200.434
202.385
(1.952)
(1.0Y6)
Parking
41.509
48.901
(5.392)
(13.0Y6)
Concessions
2.730
3.018
(288)
(10596)
Commercial Development
2.328
2.274
54
2.396
Customer Service
11.590
8.495
3.101
26.796
Norketing
(1,950)
996
RevemumMama0ement
64.686
69.161
(4.475)
(8�9Y6)
Human Resources
5.052
5.378
(326)
(6.596)
Proounament& Wt'| Nibmnt
4.950
5.022
(72)
(1.5%)
Business Diversity & Development
1.292
1.405
(113)
(8.796)
RiakkbnaQement
7.649
8.777
(1.128)
(14.7Yk)
Internal Communications
(1.3%)
Adrnimistmetiom&Diversity
19.940
21.591
(1.651)
(8.3%)
Information Technology
31.997
34.186
(2.189)
(6.896)
Finance
5.548
5.760
(214)
(3.996)
Treasury
1.213
1.306
(93)
(7.796)
Aviation Real Estate
1,484
1,453
31
2.1%
CFO
40.240
42.705
(2.465)
(V.l%)
Public Affairs
Air Service Development
Airport Development
Legal
Audit Services
Executive Office
Contingency
Non Departmental
Total Operating Expenses
48 1 DFW International Airport
4`507
5.935
(1,428)
(31.7%)
2,400
2.386
14
0i6Y6
196
642
(446)
(227.6Y6)
2.394
2.235
159
6.796
2.153
2.357
(204)
(9.5Y6)
3.747
4.044
(297)
(7.996)
2,500
1,750
750
30.0%
7,212
647
6,565
91.0%
FY 2013 Adopted Budget
I Departments
Expense Budget Walkforward
ell
Budget Category (in Millions)
Total
DFW
Airline
FY 2012 Outlook
$350.4
$142.0
$208.4
Budget reductions
A
Retirement enhancement program
(5.5)
(2.0)
(3.5)
B
Utility/energy costs
(1.7)
(0.2)
(1.5)
*
Outsource of remote busing
(1,4)
(1.4)
*
Demolition of unusable buildings
(1.0)
(0.4)
(0.6)
E
Decrease in Contingency
(0.7)
(0.3)
(0.4)
Total budget reductions
(10.3)
(4.3)
(6.0)
Regulatory/fixed increases
F
Terminal E Maintenance
0.6
0.6
G
Airfield paint removal
1.0
1.0
H
Healthcare
0.6
0.2
0.4
1
Bus contract inflation
1.1
1.1
J
Defined benefit plan
1.0
0.4
0.6
K
Property & casualty insurance
0.9
0.3
0.6
L
Skylink contract
0.6
0.6
M
CCTV maintenance
0.6
0.2
0.4
Total regulatory/fixed increases
6.4
2.8
3.6
N
Merit, annualization & vacancy factor
3.3
1.3
2.0
Strategic/new program increases
0
Expanded international marketing
1.2
1.2
P
Global Entry marketing
0.4
0.4
Q
Wheelchair assistance - Terminal D
0.4
0.4
Total strategic/new program increase
2.0
0.0
2.0
TRIP related
R
Terminal parking wayfinding
0.4
0.4
S
Terminal E ramp monitoring
0.4
0.4
Total TRIP related
0.8
0.4
0.4
Other Increases
T
Restore deicing budget
1.6
1.6
U
Restore fire-training budget
0.4
0.1
0.3
V
Lighting systems
0.5
0.2
0.3
W
Other, net (< $250,000 each)
1.0
0.6
0.4
Total other increases
3.6
0.9
2.6
Net Increases
5.7
1.1
4.6
Budget before Operating Reserve
356.1
143.1
213.0
X
Decrease in Operating Reserve
(0.3)
(0.1)
(0.2)
FY 2013 Expense Budget
$355.8
$143.0
$212.8
49 DFW International Airport
IFY 2013 Adopted Budget I Departments
Operations Division
Asset Management
Asset Management (AM) rneno8ea OFWs physical infrastructure assets. Services include
facilities nnainbananoe, cmnnnnissiuning/n*ro'commioaioninA of physical oonete, infrastructure/
facility management, solid waste management, and customer support.
Energy 0&Transportation Management
Energy & Transportation Management (E&TM) manages services to include energy
managonnent, thermal energy production and diothbuUon, potable water and sanitary sewer
system opanaUon, pretreatment plant opeodion, spent aircraft deicing fluid ooUeotimn, storage
system opeuadon. Sky|inkeyotenn operation and vehicle fleet maintenance.
Department of Public Safety (DIPS)
The Department of Public Safety ensures the protection of life and property through the effective
and efficient delivery of professional public smfah/ services to the airport cmnnnnundy to include
Police, Fire and Special Services.
Airport Operations
Airport Operations is responsible for managing aineide and |andside operotione, ground
transportation, Corporate Aviation and technical training. Airport Operations ensures the
continuous availability of aviation support services and facilities for efficient and safe operations.
Environmental Affairs
Environmental Affairs implements comprehensive environmental compliance programs
throughout DFVV Airpod, which includes support to the National Environmental Po/icy Act and
the Federal Aviation /\drninimtnsdnn; regulatory and technical guidance to [}FVV departnnents,
tenmnts, and contractors engaging in activities subject tuenvironmental |avve, regu|adons, ru|es,
and enforcement agency policy; and management of a compliance-focused Environmental
Management System and 21 core oumnp|ionon programs as well as the Noise Compatibility
(]Mioe.
Planning
Planning is responsible for directing and coordinating the overall planning activities of DFVV
including haci|itias, air8e|d, and transportation/roadway p|annin0, and for directing DFVVs
mgnagepro0nann.
�
�
�
� 50 uFvv International Airport
�
�
�
�
�
FY 2013 Adopted Budget I Departments
Budget Comparison and Walkforward
Operations Division
(in thousands)
Asset Management
Energy & Transportation Mgt.
Public Safety
Operations
Planning
Environmental Affairs
Total Operations Division
Salaries & Wages
Benefits
Contract Services
Equipment & Supplies
Insurance
Utilities
Administrative
Total Operations Division
Walkforward from 2012 Outlook
FY 2012 Outlook
Salaries and Wages
Benefits
Contract Services
Equipment & Supplies
Utilities
Administrative
Total Proposed FY 2013 Budget
51 1 DFW International Airport
FY1 2
FY1 3
Outlook
Budget_
$65,275
$67,997
57,338
56,982
60,531
59,184
10,257
10,833
2,071
2,282
4,962
5,108
200,434
202,385
63,162
63,776
32,576
32,602
64,828
65,409
13,314
15,672
0
0
25,409
23,707
1,145
1,218
$200,434
$202,385
I
Reference
$200,434
614
N
26
H,J
581
F,G,L
2,358
S,T,U,V,W
(1,702)
B
73
W
$202,385
I
FY 2013 Adopted Budget I Departments
Revenue Management Division
Customer Service
The Customer Service Department oversees the Ambassador Volunteer Progrann, Ground
Transportation Sen/ioe, Rental Car Center (RAC), and Terminal Management. All areas of
Customer Service focus on meeting public demands, omfeh/, eecurity, and guest relations to
allow for improved satisfaction and operational efficiency.
Marketing Services
Marketing Services is responsible for developing and executing DFWe trade and consumer
marketing plans in order to drive increased revenues and new airline business and for ensuring
that a consistent brand image is portrayed to every one ofDFVVsaudiences.
Parking Operations
Parking Operations consists of [)pexmUono. Customer Relations, and Busing. Parking
(]parmUonm is responsible for parking producto, prioing, service delivery and oeporting, handling
customer feedbach, monitoring electronic parking tranooctione, bi||ing, and providing
transportation services to OFVV Remote Loto, Trinity Railway Exprgsn, Terminal Link, Express
Parking and the Employee Shuffle.
Concessions
The Concessions Department is responsible for the management and administration of all
paegenggpna|otgd concessions and associated revenues within the airport terminals, rental car
center, telecommunications, and em|moted airport properties outside the terminals.
Commercial Development
The Commercial Development Department p|eno, deve|opa, markets and |emoen airline
hangare, air-cargo and logistics taci|ities, hote/o, gas/convenience mtoreo, and commercially
available land at []FVV. Commercial Development also evaluates and implements business
opportunities that diversify OFWa revenue stream.
52 1 DFW International Airport
FY 2013 Adopted Budget I Departments
Budget Comparison and Walkforward
Revenue Management Division
(in thousands)
Total FY 2013 Proposed Budget $69,161
53 1 DFW International Airport
FY12
FY13
Outlook
Budget
Customer Service
$11,596
$8,495
Marketing Services
6,523
8,473
Parking
41,509
46,901
Concessions
2,730
3,018
Commercial Development
2,328
2,274
Total Revenue Mgt Division
64,686
69,161
Salaries & Wages
22,091
20,445
Benefits
14,044
11,955
Contract Services
25,984
33,968
Equipment & Supplies
1,090
1,367
Insurance
0
0
Utilities
0
0
Administrative
1,477
1,427
Total Revenue Mgt Division
$64,686
$69,161
Walkforward from 2012 Outlook
Reference
FY 2012 Outlook
$64,686
Salaries & Wages
(1,646)
C,N
Benefits
(2,089)
C,H,J
Contract Services
7,984
C,I,O,P,Q,R
Equipment & Supplies
277
W
Administrative
(50)
W
Total FY 2013 Proposed Budget $69,161
53 1 DFW International Airport
IFY 2013 Adopted Budget I Departments
Administration and Diversity Division
Business Diversity and Development
The Business Diversity & Development Department (BODD)imresponsible for administering the
Board's Disadvantaged and K4inor em-owned BusineooEmterphseProOranno. BOOOhae
the overall responsibility to mdnniniader, monitor and enforce the [)BE and &4/VVBE policies,
standards and procedures.
Human Resources
Human Resources' (HF) primary functions are to develop and implement programs toenhance
the effectiveness of the workforce. HR is responsible for consulting and advising management
on employee relations issues, including employee corrective action, connp|einto, and grievances;
assisting employees with concerns; and developing and administering policies and procedures
to ensure compliance with federal and state regulations. HR also has responsibility for
coordinating the recruitment and staffing activities ofOFVK
Procurement &Ma&mriaDs Management
Procurement & K8oterim|o Management (PW1K4) provides OFVV'vvida centralized proourennent,
rneheha|s nnana0ennemt, and reprographiu services. PK8K4 manages professional services
contracts/procurements and P-card progrann, and prepares Official Board Actions (O8Aa) for
Board meetings. The Central Warehouse provides central receipt, financial and physical
management of inventory, management of excess and obsolete property, and provides OFVV-
vvide nnoi| service. Print Services provides centralized reproduotion, printing, and binding
services for departments within the Airport.
Risk Management
Risk Management idanhfien, analyzes and evaluates exposures, intervenes with loss prevention
measures that reduce oosto, and ensures compliance with applicable |avve and regulations.
Areas of general administration include liability claims nnanagennent, safety haininQ,
management ofae|f-fumded. fully insured, and partial dainno programs involving property and
casualty hobi|ih/. general |iabi|ih/, errors and omissions, employment |iabiUty, fiduciary/fidelity
expmmurea, contractual navievv/inbarpmetetion, breach of contract, auto |iabi|ib/, driver safety and
workers' compensation |iab(|ity, and ahorU\ong term disability. Risk K8eneQemnemt also oversees
both the [)FVV health and vvu||maaa prwgrmmn. LivaVVe||, and the newly created Integrated
Disability Management program.
Internal Communications and Diversity
Internal Communications and Diversity nnmnmgee and provides strategic direction for OFVV
Airport's internal communication and diversity programs. The Internal Communications team is
responsible for writing and managing the content, nnessaging, and distribution of all employee
communications. One of the primary objectives of Internal Communications is to educate
employees on hay DFVVAirport initiaUveo, and create communication vehicles to inform staff of
business news and recognize the efforts ofOFVV Airport employees.
54 UDFW International Airport
FY 2013 Adopted Budget I Departments
Budget Comparison and Walkforward
Administration and Diversity Division
(in thousands)
Total FY 2013 Proposed Budget $21,591
55 1 DFW International Airport
FY1 2
FY13
Outlook
Budget
Business Diversity & Development
$1,292
$1,405
Human Resources
5,052
5,378
Procurement & Materials Mgt
4,950
5,022
Risk N4gt
7,649
8,777
Internal Communications
997
1,010
Total Admin & Diversity Division
19,940
21,591
Salaries & Wages
6,327
7,050
Benefits
4,303
4,382
Contract Services
3,165
3,099
Equipment & Supplies
518
573
Insurance
4,437
5,342
Utilities
0
0
Administrative
1,190
1,145
Total Admin & Diversity Division
$19,940
$21,591
Walkforward from FY 2012 Budget
Reference
FY 2012 Outlook
$19,940
Writ, etc.
723
N
Benefits
79
H,J
Contract Services
(66)
W
Equipment & Supplies
55
W
Insurance
905
K
Administrative
(45)
W
Total FY 2013 Proposed Budget $21,591
55 1 DFW International Airport
FY 2013 Adopted Budget I Departments
CFO Division
Information Technology Services
Information Technology Services (ITS) is responsible for delivering technology solutions to DFW
and is divided into sections. Enterprise Systems is responsible for the development and
maintenance of technology solutions for DFVV human resouroae, p000urannemt, fixed asmet,
pmrking, data ornhdentuny, and public safety systems. Systems Operations is responsible for
the deve|opmont, imp|onlentotinn, nnaintenenoe, and administration of the voice and data
communications infraotructure, desktop and server computing environmnents, and data base
administration. Business Solutions is responsible for the development and implementation of
executive decision support systems, records management, CAC)O/G|S, web development, and
the implementation of work-flow technologies. Terminal Systems is responsible for the
development and maintenance of life safety systems, security aya1ennm, and passenger service
systems.
Finance
Finance is comprised of 3 groups: Accounting, Financial Planning, and Capital Planning.
Accounting is responsible for financial reporting, general ledger accounting, internal controls,
revenue collections, accounts payable, accounts receivable, payroll, and fixed assets. Financial
Planning is responsible for developing and monitoring DFWa Operating Budget and Outlook for
revenues and expenses. This group is also responsible for establishing OFWs ratea, fees and
charges, and performing departmental financial analysis. In addition, Financial Planning
analyzes DF\N'o business units to determine profbobi|ih/, implementation of activity based
ooaiing, project one|yaie, process improvement and management methodologies for proper
allocations of navanuaa and expenses. Capital Planning is responsible for developing and
monitoring DFWa Capital Budget and forecast.
Treasury/CashManagemmen%
Treasury/Cash Management is responsible for providing strategic financial management for the
Airport. This includes overseeing debt issuanoe/managennont, omoh nnmnagemnont, banking
re|ationa. DFVVinvestments, retirement fund investments, and grants and PFC administration.
Aviation Real Estate
Aviation Real Estate mmn/ao as the liaison between the Airport and the tenants of all passenger
terminals and aviation-related haci|itieo, including air cargo and hangars, Through permits and
/eeeea. Aviation Real Estate manages the contractual relationship with the tenants. The
department is also responsible for aviation facilities' strategic p|anning, with the 0om| of
maximizing efficiency within the terminals and other aviation facilities.
56 1 DFW International Airport
FY 2013 Adopted Budget I Departments
Budget Comparison and Walkforward
CFO Division
(in thousands)
ITS
Finance
Treasury
Aviation Real Estate
Total CFO Division
Salaries & Wages
Benefits
Contract Services
Equipment& Supplies
Insurance
Utilities
Administrative
Total CFO Division
Walkforward from 2012 Outlook
FY12
FY13
Outlook
Budget
$31,997
$34,186
5,546
5,760
1,213
1,306
1,484
1,453
40,240 42,705
15,425
16,421
7,626
7,830
13,272
14,582
1,564
1,458
0
0
1,854
1,860
499
553
$40,240
$42,705
FY 2012 Outlook
$40,240
Merit, etc.
996
Benefits
204
Contract Services
1,310
Equipment& Supplies
(106)
Utilities
6
Adm inistrative
54
Total FY 2013 Proposed Budget
$42,705
57 DFW International Airport
Reference
N
H,J
M'W
W
B
W
FY 2013 Adopted Budget I Departments
^PubAic Affairs Division
The Public Affairs Division is responsible for Board of Directors, connnnunky, government and
nned/o relations for DFVV Airport na|obed to loca|, regional, sbabe, national and international
nnadeno. In this role, the Division is responsible for communications with the Bomrd. DFWs
owner and host cities, media neaponaiveness, crisis communications and issues rnanagonnent,
as well as leading and articulating DFWs communications and legislative agendas. The Division
is responsible for relationship-management with external audiences. including North Texas
government entities. the Texas State Legis|atum», members of the U.G. Congress. and local and
international chambers of omnnnneroa. convention & visitors buneaua, business-to-business
communications and advocacy for airline route decisions. The Division also leads special events
planning, dignitary visits and protocol, and [}FVV and aviation education community and
leadership initiatives in its role as lead department for external communications.
Budget Comparison and WaKkfmKward
Public Affairs Division
(in thousands)
Salaries & Wages
Benefits
Contract Services
Equ|pmnerd& Supplies
Insurance
Utilities
Administrative
Total Public Affairs Division
FY12 FYl3
Outlook Budget
$1.114
$1.513
444
594
1.826
2'364
29
41
O
O
O
O
1.084
1.422
$4,5R07 $5'935
VValkfomvard from 2012Outlook
Reference
FY2O12Outlook
$4.507
Salaries &Wages
399
N
Benefits
150
H.J
Contract Services
538
VV
Equiprnent& Supplies
12
VV
Administrative
338
VV
Total IFY 2013 Proposed Budget $5,935
58 1 DFW International Airport
FY 2013 Adopted Budget I Departments
Air Service Development (ASD)
In order to expand the economic benefits for Dallas, Fort VVorth, and the reqion. DFVVworks to
aggressively develop and grow the Airport's air service core business. Air Service Development
is responsible for developing and implementing both the comprehensive air service strategy as
well as the marketing programs designed to attract new entrant, domestic and international
carriers to DFVV. In addition, Air Service Development encourages existing DFW carriers to
both enter into new markets as well as to increase service in markets which are already served.
Increases in air service either through new entrant caniara, or via existing carriers provide
substantial economic benefit for the Dallas/Fort Worth yWetrop|ex.
Air Service Development focuses on both domestic and international passenger and cargo
airlines, respectively. This section is responsible for formulating strategic plans that include top
target markets and aihines, monitoring airline business tnandn, targeting potential airline
mervices, and presenting business case presentations for target airlines to review. Through the
business case presentations, Air Service Development promotes DF\8/ by highlighting its
numerous advantages and world-class facilities, and provides analytical demonstrations of the
viability qf the [JFVV market for new airlines and new service.
Budget Comparison and Walkforward
Air Service Development (ASD)
(in thousands)
Total FY 2013 Proposed Budget $2,386
59 1 DFW International Airport
Outlook
Budget
Salaries &Wages
$817
$863
Benefits
328
390
Contract Services
793
641
Eqoiprnemt& Supplies
7
5
|n8U[a0Ce
O
O
Utilities
U
O
Administrative
455
488
TVba|AS D
$2.400
$2.386
VVo|kfonward from 2012 Outlook
Reference
F`/2012Outlook
$2'400
Salaries & Wages
40
N
Benefits
02
H.J
Contract Services
(152)
VV
Equipment /h Supplies
(3)
VV
Administrative
33
W
Total FY 2013 Proposed Budget $2,386
59 1 DFW International Airport
FY 2013 Adopted Budget I Departments
Airport Development
Airport Development has overall responsibility for the efficient, economical design and
construction of facility development and major rehabilitation projects at DFW. Airport
development also provides technical support services and/or personnel to other
departments at DFW as needed in fulfilling DFWs mission. With the exception of Airport
Development's Code Compliance activities, all costs are funded by the 301 fund, not the
102 fund. Costs are increasing in FY 2013 primarily due to increased anticipated permit
fee revenues.
Budget Comparison and Walkforward
Airport Development
(in thousands)
Total FY 2013 Proposed Budget $642
60 J DFW International Airport
FY12
FY1 3
Outlook
Budget
Salaries & Wages
$107
$389
Benefits
168
238
Contract Services
(76)
(4)
Equipment & Supplies
1
11
Utilities
(0)
Administrative
(3)
8
Total Airport Development
$196
$642
Walkforward from 2012 Outlook
Reference
FY 2012 Outlook
$196
Salaries & Wages
282
N,W
Benefits
70
H,J
Contract Services
72
W
Equipment & Supplies
11
w
Utilities
0
W
Administrative
11
W
Total FY 2013 Proposed Budget $642
60 J DFW International Airport
FY 2013 Adopted Budget I Departments
Legal
The Legal Department is responsible for providing advice and counsel to the Airport Board and
Staff and for overseeing the prosecution and defense of litigation involving DFW Airport. Legal
Department attorneys are provided by the Dallas and Fort Worth City Attorney's Offices in
accordance with the 1968 Contract and Agreement.
Budget Comparison and Walkforward
Legal
(in thousands)
Walkforward from 2012 Outlook
FY 2012 Outlook
Salaries & Wages
Benefits
Contract Services
Equipment & Supplies
Adm inistrative
Total FY 2013 Proposed Budget
61 1 DFW International Airport
1110k�— AM
$2,394
FY1 2
FY1 3
N
Outlook
Budget
Salaries & Wages
$220
$232
Benefits
130
139
Contract Services
1,947
1,787
Equipment & Supplies
64
8
Administrative
33
69
Total Legal
$2,394
$2,235
Walkforward from 2012 Outlook
FY 2012 Outlook
Salaries & Wages
Benefits
Contract Services
Equipment & Supplies
Adm inistrative
Total FY 2013 Proposed Budget
61 1 DFW International Airport
1110k�— AM
$2,394
13
N
9
H,J
(160)
W
(56)
W
36
W
$2,235
FY 2013 Adopted Budget I Departments
Audit Services
The Department of Audit Services is an independent appraisal function that reviews and
evaluates DFW activities as a service to the Board of Directors and management. The
Department of Audit Services reports directly to the Board of Directors through the
Finance/Audit Committee. The Department performs work contributing to the safeguarding of
assets; economical and efficient use of resources; accomplishment of established objectives
and goals; compliance with laws, regulations, and DFW policies; and the reliability and integrity
of information used by decision-makers.
Budget Comparison and Walkforward
Audit Services
(in thousands)
FYI 2 FYI 3
Salaries & Wages
Benefits
Contract Services
Equipment & Supplies
Insurance
Utilities
Administrative
Total Audit Services
Walkforward from 2012 Outlook
Outlook Budget
$1,266
$1,333
604
603
235
318
11
27
0
0
0
0
37
76
$2,153
FY 2012 Outlook
2,153
Salaries & Wages
67
Benefits
(1)
Contract Services
83
Equipment & Supplies
16
Administrative
39
Total FY 2013 Proposed Budget 2,357
62 1 DFW International Airport
$2,357
Reference
N
W
W
W
W
FY 2013 Adopted Budget I Departments
Executive Office
The Chief Executive Officer, as the chief administrator and executive officer of the DFW Airport
Board, recommends policies to the Board of Directors for the planning, constructing,
maintaining, operating and regulating of DFW. The Chief Executive Officer, along with the
Executive Staff (5 Executive Vice Presidents and support staff), oversees the implementation of
adopted policies and is responsible for conducting monthly and special meetings with the Board
of Directors. This budget also includes salaries and wages of support staff for the CEO and
Executive Staff.
Budget Comparison and Walkforward
Executive Office
(in thousands)
Total FY 2013 Proposed Budget $4,044
63 1 DFW International Airport
FY12
FY13
Outlook
Budget
Salaries & Wages
$2,280
$2,332
Benefits
893
854
Contract Services
44
200
Equipment & Supplies
22
44
Insurance
0
0
Utilities
0
0
Administrative
509
614
Total Executive Office
$3,748
$4,044
Walkforward from 2012 Outlook
Reference
FY 2012 Outlook
$3,748
Salaries & Wages
52
N
Benefits
(39)
H,J
Contract Services
156
W
Equipment & Supplies
22
W
Administrative
105
W
Total FY 2013 Proposed Budget $4,044
63 1 DFW International Airport
FY 2013 Adopted Budget I Departments
Total Airport Non-Departmental
The Total Airport Non-Departmental budget reflects the change in Operating Reserve, payroll
accruals, and salary and benefits savings that are recognized at a Board-wide, rather than a
departmental, level. The difference in Salaries & Wages from FY 2012 to FY 2013 is largely
because the $2.1 million payment in 2012 for the Enhanced Retirement Plan is budgeted in this
section, as is the $3.4 million savings in FY 2013. The change in contract services is due to
building demolitions.
Budget Comparison and Walkforward
DFW Non-Departmental
(in thousands)
FY12 FY1 3
Outlook Budget
Salaries & Wages $4,228 ($1,600)
Benefits (536) (50)
Contract Services
Operating Reserve
Total Non-Departmental
Walkforward from 2012 Outlook
FY 2012 Outlook
Salaries & Wages
Benefits
1,000 0
2,520 2,297
$7,212 $647
Reference
7,212
($5,828)
486
Contract Services (1,000)
Operating Reserve (223)
Total FY 2013 Proposed Budget $647
64 1 DFW International Airport
AM
F
D
V
FY 2013 Adopted Budget I Departments
Position Walkforward
Division/Department/Section
Executive Office
Public & Gov't Affairs
Legal
Audit Services
Air Service Development
Airport Development
Administration & Diversity
Human Resources
Internal Communications &Diversity
Procurernent& Materials Momt
RiskWnagemnent
Business Development &Diversity
Tcda|Adrnin & Diversity
Finance &ITS
Aviation Real Estate
Finance
TremsuryWnagernmnt
Information Technology Services
Total Finance& ITS
Revenue Management
Customer Service
Wrketin0Sen/ioem
Commercial Development
Parking Operations
Concessions
Total Revenue Wnagernent
Operations
Airport Operations
AssetWna0ement
Department ofPublic Safety
Energy @i Transportation K&grnt
Environmental Affairs
Planning
Total Operations
Total OFVV
FY12
FY13
Outlook Transfers
C"fianges Budget
10
10
16
3 19
4
1 5
15
15
8
S
98
98
38
8
28
7
8
7
41
(1)
40
17
2
19
11
(1)
21
104
0
0 104
8
8
50
50
8
8
139 2
1 142
205 2
1 208
129
(82)
47
18
1
19
17
(1)
16
336
OO
(102) 314
21
(1)
21
14
14
116
116
181
181
562
562
127
1
128
28
(1)
27
14
14
1,028
0
1,028
Note: 16 of these positions are part time
65 1 DFW International Airport
FY 2013 Adopted Budget I Capital Budget
Capital Budget
DFVVhas 2 capital accounts in its Construction and Improvement Fund: the DFVVCapital
Account and the Joint Capital Account.
The OFVV Capital Account is OFWs discretionary account. K may be used for any keosJ
purpose and does not require airline approval. [)FVV uses this fund for nanavva|a and
replacements and other discretionary projects. Funding for the OFVV Capital Account is
transferred from the net revenues from the OFVV Cost Center, interest incomne, grants and bond
proceeds for commercial development projects.
The Joint Cooha| Account requires airline approval for money to be spent, OFVVhas received
airline approval for $1.38 billion of bond funding for the Terminal Renewal and Improvement
Program (TRIP), $121 million of terminal gate expansion and conversion projects, and $220
million of other "pre-approved" projects for Airfield, Roadway/Rail, Utilities, Parking` and various
other projects. DFV8also recently received airline approval for $288.8 million of additional new
projects, including $176.7 million for m new parking garage at Terminal A. $40 nnUUon for
replacement of terminal windows, $32 million reimbursement for TRIP programming cnsto, and
various other projects, for a total of $2.57 billion of new approved projects (see table for details
on hz||ovxinQ page — "M11 Approvals Since New Use Agreement'). Funding for this account
comes from bond prooeedo, natural gas roym|Uea, am|m of land proceeds, grmnto, and interest
income. The Use Agreement provides for a Joint Capital Account Transfer of $20 million in FY
2013 to the Terminal Cost Canter to subsidize terminal rentals. This transfer will be reduced by
$4 million each year until itis totally phased out inFY2D18.
Projected Capital — Uses of Cash by Capital Account
DFVV projects to spend approximately $752.9 million on capital expenditures in FY 2013 as
summarized in the following chart.
orw
Jointmal
Account-
TRIP
It."~
=~^
FY2O1a Projected Capital Expenditures
$752.9 Million
Jointcapita/
^omum
nra^ue,mmo
66 1 DFW International Airport
Jointuopim
Account 'TRIP
$374.6
FY 2013 Adopted Budget I Capital Budget
The following table ounnnnmrizeo total projected capital expenditures for projects to be in
progress during FY2013,
Total Capital $268.8 $514,8 $729.1 $752.9 $2.150.0 $3632.0
The following table summarizes the airline Mll approvals that DFWAirport has received thus far,
including those projects in the new Use Agreement.
Mil Approvals Since New Use Agreement
Item#
Project Name
S's in Millions
Active Projects FY
Actual
Forecast
Prior
Projected
Future
Total
Capital B
TRIP Programming Cost Reimbuomnent
32.0
4
TRIP: Terminal A'Q^['&E Window Replacement
4l0
5
DFW Capital Account
95.3
89,2
119.0
156.2
552.4
827.5
Joint Capita|Aoccount
8
North Express Parking Expansion (1,O0) covered spaces)
14.0
S
Term North Extension (B/D Connector -3|ndgates)
21.0
TRIP
129.5
3083
444.1
374.6
1.160.8
1.9795
Non-TRIP
1&0
954
114.0
202�1
3968
712.9
Transfers to 102
28.0
24.0
52.0
20.0
40.0
112.0
Total Capital $268.8 $514,8 $729.1 $752.9 $2.150.0 $3632.0
The following table summarizes the airline Mll approvals that DFWAirport has received thus far,
including those projects in the new Use Agreement.
Mil Approvals Since New Use Agreement
Item#
Project Name
S's in Millions
Mil funding approvals for Capital Projects:
1
TRIP (base scope)
$1,922.0
2
TRIP (cosVscope increase tobase Term BBHS)
1I5
3
TRIP Programming Cost Reimbuomnent
32.0
4
TRIP: Terminal A'Q^['&E Window Replacement
4l0
5
TRIP: Funding of Design costs for add'| Add/Alt projects
lD
6
TRIP: Natural Gas Lines (Term B'['@Eonly)
4.0
7
$l2OKx Pre-Approved Capital Projects
220.0
8
North Express Parking Expansion (1,O0) covered spaces)
14.0
S
Term North Extension (B/D Connector -3|ndgates)
21.0
10
Terminal B North Stinger (1Oadd'|gates)
4I0
11
Term D South Extension (4odd1gates)
60.0
12
Aircraft Operation Area (A0A) Snow/Ice Removal Equip
10.0
13
Sky|ink Bond Issuance
1.0
14
Terminal A Parking Garage Reconstruction (All sections)
176.7
15
1VV Parking Expansion for Employee Parking *
0.0
16
Aircraft Design Group V| Gating Solutions (Design Only)
0.5
17
FYllADE Overhead (][A non-bond funded)
2.7
18
FY1l Natural Gas Reimbusab|es(][A non-bond funded)
1.7
19
FY12ADE Overhead (][A non-bond funded)
2.7
20
FY1Z Natural Gas Reimbusab|es(][A non-bond funded)
1.5
Mill APPROVALS - CAPITAL PROJECTS
$2,569.3
Other MU funding approvals unrelated uu Capital Projects:
31 RAC/Facility Improvement Corp (R() Bond Refunding
Mil APPROVALS - OTHER $112.0
TOTAL »mw APPROVALS ' CAPITAL PROJECTS *OTHER
* Funded from savings in $14M North Express Parking Expansion project
67 1 DFW International Airport
�
�
�
��
FY 2013 Adopted Budget I Capital Budget
The following table shows omoh flow projections, gross of grant reimbursements, for the OF\8/
capital projects. New projects are highlighted in blue and are subject to change.
DFW CAPITAL ACCOUNT Prior Future
Project Name Years FY13 Years
Air Service Incentive Plan (ASIP) & Marketing Rebates $19.2 $11.0 $34.2
Rehabilitate Airfield Pawments FY1 3 .2 8.4 6.5
Rehabilitate Airfield Pavements FY11
ARFF Truck Replacement
9.7 5.5 1.8
.O 5.2 6.4
Other Discretionary (Annual)
.O
50
100.0
Replace Remote Buses
.7
4.6
31.1
Rehabilitate Airfield Pmvemprdn FY 12
'O
4.5
8.4
Rehabilitate Airfield Lighting Systems FY 11
27
1,4
.O
Rehabiliiate'Xir'fie'ld Lighting 'Systems FY13
.0
3-6
3.8
Structural Fire Truck Replacement
.O
3.4
10.8
Employee Bus Rop|acemendFY12
.O
2.8
.O
ITS System Operations FY12Rnfrmsh
1.3
27
O
IT Bus Solutions: Business Intelligence
0
iA
8
Reclaimed Water System Phase 1
1&7
1,11
Replace Employee Buses FY13
.0
17.1
Business Continuity Program Mgmt8vca
O
2.5
7.7
Replace Terminal Link Vans
3
24
91
Rehab Deicing Sys Large Storage Areas
.0
2.3
2.0
Tor
2.
Rehabilitate Airfield Lighting Systems FY 14
.0
1.9
2.0
Rehabilitate Airfield Pmements FY14
.0
1.7
20A
Facility Renewal (Annual) --
0
15
1ZO
Replace Potable Water Re\,emmeMotee
1
1,5
.O
Pax Amenities Romoma. Relocation &Storage
.4
1.4
1.3
Rehabilitate Airfield Lighting Systems FY 11
27
1,4
.O
Replace Express Vans
20
1�3
17.3
Rehabilitate Parking Lot
U
13
32
Replace Rapid Intervention Vehicles (RIV)
.0
1.2
.0
IT Bus Solutions: Business Intelligence
0
iA
8
Reclaimed Water System Phase 1
1&7
1,11
.0
Rehabilitate Industrial Wastewater VVV System O 10 .5
Projects <1M 63.9 273 8i2
TOTAL DFW CAPITAL ACCOUNT $119.0 $156.2 $5524
68 1 DFW International Airport
FY 2013 Adopted Budget I Capital Budget
The following projects wiUbe6undedhonntheJortCaoda|AccountduhngFY2O13. Spend
amounts are gross of grant reimbursements.
JOINT CAPITAL ACCO U NT Prior Future
Project Name Years FY13 Years
Terminal Renewal/ Impro\,ement Program (TRIP) $444.1 $374.6 $1,160.8
TOTAL JOINT CAPITAL ACCOUNT (TRIP) $444.1 $374.6 $1,160.6
Term B North Stinger
$5.0
$22.7
$14.6
DART Rail Station @ Term A
6.9
20.2
8.0
Term A Garage Reconstruction (section A)
3T2
20.0
0.0
Term A Garage Reconstruction (section B)
0.0
117 2
40.1
T/W "Lima" Reconstruct Airfield Taxiway
1.4
16.8
32.9
North/South Toll Plaza & Parking Admin Bldg
10.9
1&0
0.8
Term D North Ext
3.5
14.9
3.0
Parking Control System (PCS)
10.6
13.8
0.6
W. Airfield Dr & Mid-Cities Rd
0.5
10.9
6.5
Elevated Water Tower (2.5 MG)
0.8
5.2
5.5
Fire Training Center Rehab
21,3
4.5
0.0
ITS Radio System Expansion
0.2
3,6
8.9
ADE O\erhead (Annual)
0,0
2.8
26.8
Rehabilitate Spent Aircraft Deicing Fluid System
00
2,3
3.6
NE/NW Cargo VCP Remediation
0,4
1.3
3.4
Oil and Gas Lease Reimbursables (Annual)
0,0
1.0
10.0
Ft�A,
"
Projects <11M
11.3
9.7
190.8
TOTAL JOINT CAPITAL ACCOUNT (NON-TRIP)
$11114 0
$202.1
$396.8
TOTAL JOINT CAPITAL ACCOUNT
$558.1
$576.7
$1,557.6
TOTAL JOINT + DFW CAPITAL ACCOUNT
$677.1
$732.9
$2,110.0
FY 2013 Adopted Budget I Capital Budget
Capital Project Approval Process
|nFf281O.OF\8/management developed a1U-vear capital plan es the basis for negotiating the
Use Agreement. The FY 2013 projects from the list on the prior page were derived from that
plan, Most of the new projects are officially in m "planning status." When the project manager is
ready to initiate the pnojeot, they prepare detailed capital worksheet including alternatives and
present this to the Capital Committee for review and approval. Executive Management approval
is required for projects over a certain |inniL Projects on this list may be modified or eliminated if
planning assumptions on costs and benefits do not materialize upon more detailed analysis, It
is possible that new projects may arise during the fioco| year due to the dynamic nature of an
airport. This "just-in-time" capital planning process provides flexibility to manage the process
most effectively. From a process standpoint, the Board of Directors does not approve an overall
capital budget. Instead, the Board naviexve projects to befundad with bond proceeds before the
bonds are sold and reviews individual capital projects as contracts for those projects are
brought to the Board for approval.
Major Capital Project Descriptions
There are several major capba|initiativeaindudediniheFY2013Capita|Budgetinduding:
Terminal Renewal and Improvement Program
(TRIP) —Ao DFWe donneado terminals approach
end of useful Ufe, a major rehabilitation/
redevelopment program is underway for Terminals
A. B. C and E. The current budget io$1.08billion
(inflated do||ars). Construction is currently
underway for the first phase mfTerminal & Total
program completion is scheduled for 3017.
Approximately $374.6 million is anticipated to be
spent during FY2O13.
.
u
Parking Expansion — Parking c000uitv at Terminal A will be expanded by approximately
5396 through the reconstruction of a new more efficient parking facility with
approximately 7.70O spaces to replace the prior parking structure. Additional parking
expansion projects include.- 1.100 new covered parking spaces at the North Express
parking lot scheduled to be open by November 2012, in addition to the 1.000 spaces
opened in this same parking lot in November 2011. Approximately $507 million is
anticipated tmbe spent during FY2D13on these new parking projects.
Parking Control System and Parking Infrastructure Renewal —AoDFWoourrgn parking
ayoiern, bd| booths and related infrastructure
reach end of useful |iha and has surpassed its
original design capacity, a major renewal is
planned to design and install a new Parking
Control Gyotann which will be capable of
accommodating emerging business requirements
and enhanced functionality. Additionally, the
current north and south parking toll plazas and
administration buildings will be renovated.
PHI W^ x r ho
""==" ~�~�" ^^'^~' '~ ~^~~~~~~ '~ ~~
spent during FY 2013.
70 1 DFW International Airport
FY 2013 Adopted Budget I Capital Budget
Terminal Gate Expansion and Conversion — Additional gate capacity is planned in
Terminal D and B due to increased demand. Projects include the conversion of 3
domestic gates between Terminals D and B to accommodate international flights,
construction of a new 10 -gate terminal extension on the north side of Terminal B, and
construction of gates in a terminal extension south of Terminal D. These projects were
pre- approved in the Use Agreement. The Terminal B North Expansion and B/D
Connector are currently in design. The Terminal D South Extension projects are in
preliminary Programming and Schematic Design phase.
■ DART Rail Station — A rail station is being constructed between Terminals A and B to
accommodate DART's rail line coming into the north end of DFW Airport. This project is
timed to be finished in advance of DART's plan to complete the rail construction to DFW
Airport in 2014. Approximately $20.2 million is anticipated to be spent during FY 2013.
Capital Projects - Sources of Cash
DFW's capital programs are funded from a variety of sources as shown in the following chart
FY 2013 Capital Sources of Cash
$752.9 Million
Debt
$589.1
71 1 DFW International Airport
Natural Gas
Royalties
_$5.0
Interest
Income
$4.5
Cash Flow
Adjustment
$50.5
Carryover
Cash
Balances
$40.3
3rants $63.5
FY 2013 Adopted Budget I Capital Budget
The following table highlights the walkforward of DFWs capital funds.
Airport Capital Funds Walkforward
(in Millions)
6 a a
Capital Walkfbrward
Capital
Capital
Total
Beginning Cash (10/1/12)
$539.0
$65.9
$604.9
Sources of Funds:
Grants
$14.0
26.3
40.3
Debt
558.9
30.2
589.1
Debt (reimbursement)
.0
.0
.0
Natural Gas Royalties
5.0
-
5.0
Interest Income
17
.8
4.5
Total Sources
$581.6
$57.3
$638.9
Less:
Capital Uses
($576.7)
(156.2)
(732.9)
Cash Flow Adjustment
$50.5
.0
50.5
Joint Capital Account Transfer to 102
(20.0)
(20.0)
Total Uses
(546.2)
(156.2)
(702.4)
Total Ending Cash Balance
$574.4
($32.9)
$541.4
Add: Cash From DFW Cost Center
.0
63.5
63.5
Ending Cash (9/30/13)
$574.4
$30.5
$604.9
* FY12 O &M DFW Cost Center Outlook to be received in DFW Capital Acct in first QuarterFY13
72 1 DFW International Airport