Official Statement Airport Commission City and County of San ...

SUMMARY OF AIRPORT FINANCIAL RESULTS
($ in thousands)
(Fiscal Years)
2004-05 2005-06 2006-07 2007-08 2008-09
Aviation Revenues
Concession Revenues (1)
$303,015 $263,422
131,182
(2)
$296,368 $306,348 $315,777
143,051 155,653 172,947 178,995
Net Sales and Services 43,117 48,869 51,893 56,476 56,511
Total Operating Revenues
Total Operating Expenses (3)
477,314
(418,993) (4)
455,342 503,914 535,771 551,283
(432,811) (431,059) (451,258) (478,589)
Operating Income
Nonoperating Revenue (Expense) (5)
58,321 22,531 72,855 84,513 72,694
(127,121) (92,234) (94,590) (102,978) (119,634)
Income (Loss) Before Operating Transfer
Capital Contributions (6)
(68,800)
34,893
Loss Due to Asset Impairment
(50,043) (7)
(69,703) (21,735) (18,465) (46,940)
48,544 46,902 41,060 29,780
–
–
–
–
Transfer to the City
(19,677)
Transfer from the City
4,611
Changes in Net Assets
(8)
($99,016) (10)
(21,458)
(55) (9)
(23,348) (25,942) (26,849)
–
–
–
__________________
($42,672) $1,819 ($3,347) ($44,009)
(1) Also includes parking and transportation revenues.
(2) The decrease in the amount of $39.6 million compared to Fiscal Year 2004-05 is a result of the residual calculation performed in accordance
with the Lease and Use Agreements. See “SAN FRANCISCO INTERNATIONAL AIRPORT–Existing Airline Agreements–Lease Agreements–
Residual Methodology.”
(3) Includes depreciation and amortization expense in the amounts of $161.6 million for Fiscal Year 2004-05, $162.0 million for Fiscal
Year 2005-06, $142.8 million for Fiscal Year 2006-07, $151.1 million for Fiscal Year 2007-08 and $158.2 million for Fiscal Year 2008-09.
(4) Operating expenses in Fiscal Year 2004-05 increased by $19.3 million compared to the prior Fiscal Year primarily due to an increase in
repair and maintenance costs of Airport infrastructure.
(5) Includes interest expense in the amount of $209.4 million for Fiscal Year 2004-05, $200.3 million for Fiscal Year 2005-06, $193.7 million
for Fiscal Year 2006-07, $200.3 million for Fiscal Year 2007-08 and $204.7 million for Fiscal Year 2008-09.
(6) Represents federal grant funds.
(7) Represents remaining costs associated with the suspension of the runway reconfiguration project that were written off based on a
determination that, for accounting purposes, the associated costs no longer have economic value.
(8) Represents a transfer from the City in the amount of $4.6 million as settlement of amounts owed as a result of an audit by the
U.S. Department of Transportation Office of Inspector General (the “OIG”). See “AIRPORT’S FINANCIAL AND RELATED INFORMATION–
Payments to the City–Annual Service Payment.”
(9) Represents the balance of the OIG audit settlement amount that was returned to the City. See “AIRPORT’S FINANCIAL AND RELATED
INFORMATION–Payments to the City–Annual Service Payment.”
(10) The net loss is primarily attributable to increases in operating expenses due to increases in infrastructure repair and maintenance costs and
approximately $50 million in capitalized costs relating to the runway reconfiguration project that were written off due to asset impairment
based upon a determination that, for accounting purposes, certain costs related to the preparation of environmental impact reports and
engineering no longer have economic value. See also “CAPITAL PROJECTS AND PLANNING.”
Source: San Francisco Airport Commission.
City Budget Process
The Airport budget is a part of the overall budget prepared annually by the City. Each year, the Airport’s
proposed budget is reviewed by airline representatives and is approved by the Commission before being submitted
to the Mayor. The Mayor’s office reviews and may amend the Airport’s proposed budget, and then incorporates the
proposed budget into the over-all City budget that is submitted to the Board of Supervisors for approval. Under the
Charter, the Board of Supervisors may increase or decrease any proposed expenditure in the Mayor’s budget so long
as the aggregate changes do not cause the expenditures to exceed the total amount of expenditures proposed by the
Mayor. The Charter further provides that the Mayor may reduce or reject any expenditure authorized by the Board
of Supervisors except appropriations for bond interest, redemption or other fixed charges, subject to reinstatement of
any such expenditure by a two-thirds vote of the Board of Supervisors.
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