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3 Assumptions Enplanement projections for 2010 are based on the 2010 budgeted enplanements. For 2011 and 2012, enplanements are based on projections provided by airport consultants, reduced slightly for management conservatism. For 2013 and beyond, enplanements are based on consultant projections. The percentage increases/decreases in enplanements were also applied to landed weight projections: –Rate varies from: Reductions in fiscal year: 2010 – (~1%) from 2009 projected Increases in fiscal years: 2011 – 3.0% 2012 – 4.0% 2013 – 3.3% 2014 – 1.6% Operating & maintenance expense growth 3% $85 million reduction in CIP program
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San Diego County Regional Airport AuthorityCapital Development Financing Plan
Board PresentationJuly 9, 2009
Presented By: Vernon D. Evans, CPAVice President of Finance/Treasurer
2
Overview
• Assumptions
• Use and Source of Funds
• Scenarios– I– II– III
• Summary
3
Assumptions• Enplanement projections for 2010 are based on the 2010
budgeted enplanements. For 2011 and 2012, enplanements are based on projections provided by airport consultants, reduced slightly for management conservatism. For 2013 and beyond, enplanements are based on consultant projections. The percentage increases/decreases in enplanements were also applied to landed weight projections:– Rate varies from:
• Reductions in fiscal year:2010 – (~1%) from 2009 projected
• Increases in fiscal years:2011 – 3.0%2012 – 4.0%2013 – 3.3%2014 – 1.6%
• Operating & maintenance expense growth 3%• $85 million reduction in CIP program
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Assumptions
• Concession revenue growth:– 2010 0.0% 2013 4.9%– 2011 6.3% 2014 19.8%– 2012 6.7% 2015 6.8%
• Changing management model• Adding 56,000 square feet in T2 West
• Interest earnings rate 1.4% to 2.5% through 2014
• Stimulus legislation exempts private activity bonds from AMT through 12/31/10 – AMT penalty is approximately 100 to 125 basis points
• 90% of the Passenger Facility Charges, ($4.50), have been allocated to the Terminal Development Program
• Project Escalation of 5%
• Approved Airline Operating Agreement
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Use of FundsCash Requirements
USE OF FUNDS TDP CIP FY07-13 Total
Project CostsCIP - Original -$ 225,119,800$ 225,119,800$ CIP - Additional Projects - 22,336,000 22,336,000 Terminal Development Program 864,612,668 - 864,612,668 Total Project Costs 864,612,668 247,455,800 1,112,068,468
Financing RequirementsRefunding Commercial Paper 6,108,606 78,321,394 84,430,000 Deposit to Capitalized Interest Fund 66,791,006 14,966,415 81,757,421 Deposit to Debt Service Reserve Fund 63,822,965 13,746,611 77,569,576 Cost of Issuance 7,369,344 1,613,947 8,983,291 Total Financing Requirements 144,091,922 108,648,367 252,740,289
Total Use of Funds & Cash Requirements 1,008,704,590$ 356,104,167$ 1,364,808,757$
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Source of FundsScenario I
SOURCE OF FUNDS TDP CIP FY07-13 Total
Federal Grants 27,096,000$ 45,424,034$ 72,520,034$ Passenger Facility Charges 115,642,606 85,057,841 200,700,447 Commercial Paper - 28,891,394 28,891,394 Airport Revenue Bonds 859,254,400 174,370,600 1,033,625,000 Airport Cash 6,711,584 21,321,634 28,033,218 TSA Grant - 1,038,664 1,038,664
Total Sources of Funds 1,008,704,590$ 356,104,167$ 1,364,808,757$
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Cumulative Source of Funds
Pre FY2010 FY2010 FY2011 FY2012 FY2013 TotalFY2007-13
Estimate Estimate Estimate Estimate EstimateSOURCES OF FUNDS
Capital RequirementsFederal Grants 6,082,536$ 45,416,584$ 3,020,331$ 9,000,291$ 9,000,291$ 72,520,033$ Passenger Facility Charges 42,877,534 69,768,458 27,040,084 42,241,861 18,772,511 200,700,447 Commercial Paper 28,891,394 - - - - 28,891,394 Airport Revenue Bonds 1,826,673 177,924,920 232,912,226 252,265,679 115,955,213 780,884,711 Airport Cash 23,334,820 3,976,927 721,471 - - 28,033,218 TSA Grant 1,038,664 - - - - 1,038,664
104,051,621 297,086,889 263,694,112 303,507,831 143,728,015 1,112,068,467
Other Financing CostsFederal Grants - - - - - - Passenger Facility Charges - - - - - - Commercial Paper - - - - - - Airport Revenue Bonds - 156,773,407 50,662,774 33,924,321 11,379,787 252,740,289 Airport Cash - - - - - - TSA Grant - - - - - -
- 156,773,407 50,662,774 33,924,321 11,379,787 252,740,289
TOTAL SOURCES OF FUNDS 104,051,621$ 453,860,296$ 314,356,886$ 337,432,152$ 155,107,802$ 1,364,808,756$
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Scenario Assumptions
• Scenario I– 6.00% Interest Rate
• Scenario II– 5.50% Interest Rate
• Scenario III– 6.75% Interest Rate
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Financial Results – Scenario I
6.00% Bond Interest Rate
Cost Landing Terminal Airline Non-Airline Investment Operatingper EP Fee Rent Rate Revenue Revenue Income Expenses
2009 $6.69 $1.65 $67.55 56,917,705 78,285,866 5,344,100 (120,752,504) 2010 $7.42 $1.72 $79.54 62,451,200 72,218,838 5,457,300 (122,808,781) 2011 $7.94 $1.68 $90.24 68,695,600 77,359,694 7,270,700 (126,493,045) 2012 $8.43 $1.68 $100.25 75,688,100 81,759,982 9,285,800 (130,287,836) 2013 $11.37 $1.71 $126.89 104,769,500 88,098,047 10,251,600 (134,196,471) 2014 $11.81 $1.77 $135.44 110,474,000 94,105,411 10,932,000 (138,222,365)
Non-Operating Debt Net Revenue Debt Svc Enplaned LandedRev / (Exp) Service Available Coverage Passengers Weight
2009 (7,585,600) (9,298,309) 2,911,257 2.89 8,273,395 11,505,489 2010 (3,893,800) (8,508,064) 4,916,692 1.79 8,200,120 11,382,155 2011 (3,323,500) (10,169,864) 13,339,585 2.46 8,446,124 11,723,619 2012 (3,335,860) (10,171,614) 22,938,572 3.40 8,783,969 12,192,564 2013 (3,348,591) (44,631,319) 20,942,766 1.50 9,073,840 12,594,919 2014 (3,361,704) (49,950,869) 23,976,473 1.50 9,219,021 12,796,437
$11.37
1.50
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Financial Results – Scenario II
5.50% Bond Interest Rate
Cost Landing Terminal Airline Non-Airline Investment Operatingper EP Fee Rent Rate Revenue Revenue Income Expenses
2009 $6.69 $1.65 $67.55 56,917,705 78,285,866 5,344,100 (120,752,504) 2010 $7.42 $1.72 $79.51 62,440,900 72,218,757 5,421,200 (122,808,781) 2011 $7.94 $1.68 $90.12 68,653,800 77,359,287 7,253,300 (126,493,045) 2012 $8.43 $1.68 $100.12 75,642,900 81,759,505 9,242,400 (130,287,836) 2013 $11.08 $1.71 $121.50 102,161,300 88,089,315 10,199,900 (134,196,471) 2014 $11.49 $1.77 $129.40 107,551,200 94,092,905 10,909,300 (138,222,365)
Non-Operating Debt Net Revenue Debt Svc Enplaned LandedRev / (Exp) Service Available Coverage Passengers Weight
2009 (7,585,600) (9,298,309) 2,911,257 2.89 8,273,395 11,505,489 2010 (3,893,800) (8,440,743) 4,937,533 1.80 8,200,120 11,382,155 2011 (3,323,500) (9,958,680) 13,491,162 2.51 8,446,124 11,723,619 2012 (3,335,860) (9,960,430) 23,060,678 3.47 8,783,969 12,192,564 2013 (3,348,591) (40,367,551) 22,537,902 1.59 9,073,840 12,594,919 2014 (3,361,704) (45,204,313) 25,765,023 1.59 9,219,021 12,796,437
$11.08
1.59
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Financial Results – Scenario III
6.75% Bond Interest Rate
Cost Landing Terminal Airline Non-Airline Investment Operatingper EP Fee Rent Rate Revenue Revenue Income Expenses
2009 $6.69 $1.65 $67.55 56,917,705 78,285,866 5,344,100 (120,752,504) 2010 $7.42 $1.72 $79.60 62,471,800 72,218,999 5,515,300 (122,808,781) 2011 $7.95 $1.68 $90.42 68,758,100 77,360,414 7,311,100 (126,493,045) 2012 $8.44 $1.68 $100.45 75,758,300 81,760,816 9,382,800 (130,287,836) 2013 $11.86 $1.71 $136.19 109,269,400 88,113,162 10,350,200 (134,196,471) 2014 $12.32 $1.77 $145.17 115,182,000 94,125,970 10,966,800 (138,222,365)
Non-Operating Debt Net Revenue Debt Svc Enplaned LandedRev / (Exp) Service Available Coverage Passengers Weight
2009 (7,585,600) (9,298,309) 2,911,257 2.89 8,273,395 11,505,489 2010 (3,893,800) (8,617,919) 4,885,599 1.78 8,200,120 11,382,155 2011 (3,323,500) (10,498,156) 13,114,913 2.39 8,446,124 11,723,619 2012 (3,335,860) (10,499,906) 22,778,313 3.32 8,783,969 12,192,564 2013 (3,348,591) (51,948,096) 18,239,603 1.38 9,073,840 12,594,919 2014 (3,361,704) (57,587,034) 21,103,667 1.38 9,219,021 12,796,437
$11.86
1.38
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Summary of ScenariosFinancial Results - 2013
Cost Per Enplaned Passenger
Landing Fee
Terminal Rental Rate
Airline Revenue
Non-Airline Revenue
Investment Income
I 5.50% $11.08 $1.71 $121.50 $102,161,300 $88,089,315 $10,199,900II 6.00% $11.37 $1.71 $126.89 $104,769,500 $88,098,047 $10,251,600III 6.75% $11.86 $1.71 $136.19 $109,269,400 $88,113,162 $10,350,200
Operating Expenses
Non-Operating Rev / (Exp) Debt Service
Net Revenue Available
Debt Service
CoverageEnplaned
PassengersLanded Weight
I 5.50% ($134,196,471) ($3,348,591) ($40,367,551) $22,537,902 1.59 9,073,840 12,594,919II 6.00% ($134,196,471) ($3,348,591) ($44,631,319) $20,942,766 1.50 9,073,840 12,594,919 III 6.75% ($134,196,471) ($3,348,591) ($51,948,096) $18,239,603 1.38 9,073,840 12,594,919
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Airport Cost per EPAXProjected 2013
$11.37
$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00
SAN DIEGO
TAMPA
WASH/REAGAN
PORTLAND
CLEVELAND
LOS ANGELES
ONTARIO
LONG BEACH
ORANGE COUNTY
SAN FRANCISCO
OAKLAND
SAN JOSE
Recent Historical CPE FY2013 Projected CPE
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