2 21 12 Airport Budget Presentaton FY 2013Dubuque Regional Airport
Airport Budget Presentation
February 21, 2012
Property Tax Support:
Recommended Actual Tax
Tax Support Support
r FY09 25.68% 14.75%
- FY10 18.27% 17.51%
- FY11 19.18% 15.50%
- FY12 22.40%
FY13 18.60%
FY2013 0 & M Equipment
Replacement Items:
Tractor
(Aircraft Ground Handling Tug)
$30,000
Truck $28,000
Mower $18,000
Airfield Paint Sprayer $ 7,000
FY2013 0 & M Improvement
Packages:
'r Airfield WiFi (Connectivity) $14,400
r Foreign Object Debris
Boss (Safety)
---c Airfield Signage
(FAA Requirement)
$12,500
$10,900
FY2013 0 & M Improvement
Packages a Continued:
��Aerial GIS Photography $9,750
(FAA's EALP)
'rPilot's Lounge Furniture $4,000
(Revenue generated)
'rFarm Land Appraisal $2,000
(Revenue generated)
Airfield WiFi
FOD Boss
FOD'BOSS Duplex Version
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Ie!JaY
a6eu6is PP!J'!V
Pilot's Lounge
Furniture
Farm Land
Appraisal
FY2013 Requested Capital
Improvements — Continued:
+Airport Runway Painting
+ Corporate Hangar Facilities
Repair
+ HVAC Replacement -Joint
Use Facility
$50,000
$35,000
$56,512
FY2013 Requested Capital
Improvements:
Terminal Facility Complex
Roads & Apron* $6,130,160
*90% FAA Funded as of 2 -18 -12
FAA Modernization & Reform
Act of 2012
Signed into law February 14, 2012
Reduces overall airport funding from $3.8
to $3.35 Billion (no impact on DBQ)
No authorized increase in Passenger
Facility Charges (PFCs)
Increases local match of projects from 5%
to 10%
Commission Goals & Objectives:
4- Increase Commercial Air Service Operations
+ Expand Corporate & Private Aviation Services
4- Increase Visibility & Awareness of Airport Services
3- Maintain Existing Facilities
sr Expand Facilities to Attract New Business &
Increase Service Level
+ Increase & Diversify Revenue Streams
Terminal Facility Complex
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Terminal Facility Complex
Terminal Facility
Complex Financing
$761,298
$2,508,427
$1,018,734
$35,252,939
$325,236
$116,804
• FAA ❑ PFC
U State ❑ City
❑ CFC J RISE Grant
Site Work $ 5,668,357
Building /Equip $10,825,840
Roads & Aprons $14,453,402
Parking Lots $ 4,386,095
Utilities $ 3,550,932
Boarding Bridge $ 969,540
Signage $ 129,272
TOTAL $39,983,438
Thru 2 -17 -2012
Terminal Facility
Complex Financing
• FAA
❑ State
❑ CFC
❑ PFC
❑ City
LI RISE Grant
Site Work $ 5,668,357
Building /Equip $10,825,840
Roads & Aprons $14,453,402
Parking Lots $ 4,386,095
Utilities $ 3,550,932
Boarding Bridge $ 969,540
Signage $ 129,272
TOTAL $39,983,438
As of 2 -18 -2012
General Aviation and Our Community
Beyond Commercial Flights:
9-Community Events Military
9-Educational National
Events
+ Economic &Political
Medical Safety
General Aviation
Charter Flights
University of Dubuque
Flight School
NATA (North American
Trainers Association)
Military
Prior Year Accomplishments:
+ Replaced 3 Hangars Damaged by Wind
Storm
+ Completed Grading Improvements for
Runway Safety Area
+ Facilitated 2 Honor Flights for
WWII /Korean Veterans
Started Site Work for New Terminal
Complex Facility
• • ! -
Political
Recreational Aircraft
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odx3 /asnoH uadp 14odaid
Fly -In Breakfasts
Skydiving
July 3rd Air Show
;Ale %).
• s S w
DUBUQUE REG ONAL AIRPORT
Thanks for your support!
Rewards and Accolades:
20th Consecutive Perfect Part 139 Safety
Compliance Inspection -- The "Best
Record in the Central Region"
Received Award for Safety Management
System (SMS) Pilot Study
World War II /Korean
Veterans Honor Flights
September 26, 2011 September 27, 2011
FIyDBQ Rewards Accomplishments:
American Airlines Admirals
Club Members
$1,500 3 Bunker Hill Memberships
2,380 Members (8% Increase)
+$7,125 Floor Show Furniture Gift Cards
+462,000 American Advantage Miles
Earned
Future Initiatives:
Continue Implementation of Airport
Master Plan
Retain /Expand Air Service
Complete Construction of New
Terminal Complex
Improved Services for Corporate and
General Aviation
Dubuque Regional Airport Staffing:
Administration Corporate Tenants, Leases,
Marketing, Planning
Dubuque Jet
Center
Fueling Services, Ground
Handling, Hangaring
24 Hr Operations ARFF, FAA Compliance,
Staff Parking, Public Safety
Maintenance Airfield and Landside
Buildings, Equipment
FY20130 &M
Airport Operating Budget:
+Revenues
+Property Tax Support
Expenses
Abated Debt
$3,496,355
$ 726,232
$4,222,587
$4,028,567
$ 194,020
$4,222,587
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Airport New Terminal Facility Project - Local Match Increase
DATE: February 18, 2012
Dubuque
Wad
All-America City
I '
2007
INTRODUCTION
The purpose of this memorandum is to recommend additional funding to provide local
match on the Airport New Terminal Project due to the increase in local match on
Federal Aviation Administration funding.
BACKGROUND
The President last week signed into law the long- delayed Federal Aviation
Administration (FAA) reauthorization bill. Although the legislation provides airports with
some much - needed certainty for large scale projects like the Airport New Terminal, the
bill calls for flat funding for aviation programs through fiscal year 2015 and keeps the
cap on Passenger Facility Charges at $4.50 per passenger.
H.R. 658, the FAA Modernization and Reform Act of 2012, authorizes $3.35 billion
annually for the Airport Improvement Program (AIP) through fiscal year 2015, the same
amount that Congress approved in the fiscal year 2012 appropriations process, but
$350 million more per year than the House recommended. Dubuque staff and trade
groups called on Congress to eliminate the federal cap on local Passenger Facility
Charges and increase Airport Improvement Program funding in order to provide airports
with the resources that they need for safety and capacity construction projects.
The final FAA bill also reduces the federal share for AIP projects at most small airports
from 95 percent to 90 percent and ends a temporary increase that Congress included in
the last FAA bill. The American Association of Airport Executives and small airports
around the country repeatedly urged lawmakers to retain the higher federal share.
However, FAA and lawmakers intent on reducing federal spending argued for the higher
local match. This higher local match of ten percent goes into effect on all projects not
currently under grant with the FAA.
DISCUSSION
The Airport New Terminal project has two components that are currently under grant
with the FAA , design of the new terminal facility and construction of sitework, and
therefore qualify for a five percent local match instead of the newly required ten percent
match.
The following table shows the components of the new terminal facility project that are
not currently under grant with the FAA and now have a ten percent local match instead
of a five percent local match:
Terminal Component
Federal
Eligibility
%
Project
Cost
Previous
Federal
Funds
Current
Federal
Funds
Previous
Local Match
Current
Local
Match
Increase
Local
Match
Terminal Building
85.3%
$8,752,175
$7,092,325
$6,719,045
$1,600,996
$2,033,130
$432,134
Roads & Apron
100%
$9,220,517
$8,759,492
$8,298,465
$461,025
$922,050
$461,025
Terminal Parking
100%
$4,278,575
$4,064,647
$3,850,718
$213,928
$427,858
$213,930
Aircraft Deice Fluid
Containment
100%
$948,300
$900,885
$853,470
$47,415
$94,830
$47,415
Water & Sewer
85.3%
$2,741,380
$2,221,477
$2,104,557
$519,903
$636,823
$116,920
Utilities
85.3%
$435,050
$352,543
$333,988
$82,507
$101,062
$18,555
Parallel & Taxiway F
100%
$2,982,375
$2,833,257
$2,684,138
$149,118
$298,238
$149,120
Furnishings
73.6%
$1,351,250
$944,794
$895,068
$406,456
$456,182
$49,726
Loading Bridge
100%
$969,375
$920,907
$872,438
$48,468
$96,938
$48,470
Signage
100%
$129,250
$122,788
$116,325
$6,462
$12,925
$6,463
Total
$31,808,247
$28,213,115
$26,728,212
$3,536,278
$5,080,036
$1,543,758
The construction of the new terminal building will be ready to be bid in September 2012.
The estimated schedule of local match needed by year for the Terminal Facility project
excluding State funding and Customer Facility Charge (rental car fee) funding is as
follows:
FY 2013 $2,044,405
FY 2014 $1,103,570
FY 2015 $ 471,440
FY 2016 $ 348,880
Total $3,968,295
In the FY 2013 recommended five -year capital improvement program, it was planned to
issue General Obligation debt abated by Airport passenger facility charge revenue for
the City's local match. The recommended debt by year is as follows:
FY 2013 $1,305,763
FY 2014 $ 725,252
FY 2015 $ 219,083
FY 2016 $ 174,439
Total $2,424,537
The Airport passenger facility charge generates approximately $150,000 in revenue per
year and is based on the number of passengers. As of February 17, 2012, the cash
balance of the passenger facility charge fund was $1,033,091. It is estimated that the
remaining five months of FY 2012 will generate an additional $62,500. The estimated
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cash balance at the end of FY 2012 is estimated to be $1,095,591. There is $455,713
committed of the balance for local match on the design of the terminal facility and
sitework construction already underway. The uncommitted balance of the passenger
facility fund is estimated to be $639,878.
It will be necessary to borrow the additional $1,543,758 in local match needed for the
Airport Terminal Facility project in addition to the $2,424,537 already planned to be
borrowed in the five -year CIP.
The City's financial advisor, Public Financial Management, has analyzed passenger
facility charge cashflows for the proposed general obligation debt issuances abated with
Airport passenger facility charge. There are three issuances proposed based on the
estimated construction schedule which are as follows:
FY 2013 $2,100,000
FY 2014 $1,160,000
FY 2015 $ 865,000
Total $4,125,000
The FY 2013 debt issuance assumes an interest rate of 3.00 %; the FY 2014 debt
issuance assumes an interest rate of 3.50 %; and the FY 2015 debt issuance assumes
an interest rate of 3.75 %. The borrowings include an estimated cost of issuance and
underwriters discount for a total of $156,403 for all three borrowings.
Based on the available cash balance of Airport passenger facility charge fund and future
revenues increased 1% per year beginning in FY 2013, the Airport passenger facility
charge fund would be able to pay all debt service payments on the issued debt through
FY 2019. Then in FY 2020, all of the passenger facility fund's cash balance will have
been used and another source of payment will need to be budgeted to pay the annual
debt service on the debt. The amount of debt service needed to be paid from another
source from FY 2020 until the first debt issuance is paid off in FY 2032 is as follows:
FY 2020 $ 84,386
FY 2021 $127,617
FY 2022 $124,476
FY 2023 $121,319
FY 2024 $123,146
FY 2025 $119,768
FY 2026 $116,373
FY 2027 $117,962
FY 2028 $114,345
FY 2029 $110,711
FY 2030 $112,060
FY 2031 $108,203
FY 2032 $109,328
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If the City decided to use a debt levy abated by property taxes to pay the Airport
Terminal Facility debt in FY 2020, the amount of the debt levy in the highest year of
debt service (FY 2021) would be $0.06052 and the impact to the average homeowner
would be an increase of $4.00 or 0.64 percent in their City share of property taxes.
Even though the action taken by Congress was unexpected, there is enough passenger
facility charge revenue to keep the project on schedule and allow time to budget
additional revenue in Fiscal Year 2020 to cover the remaining debt payments through
2032 until the first debt issuance is paid off.
RECOMMENDATION
I respectfully recommend the approval of $738,642 in additional general obligation debt
for the Airport terminal facility project abated by Airport passenger facility charge
revenue for Fiscal Year 2013. The remaining debt issuances for the Airport Terminal
Facility project will be reviewed through the FY 2014 and FY 2015 budget process.
JML
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Robert Grierson, Airport Manager
Kenneth TeKippe, Finance Director
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