Management’s Discussion and Analysis

(In thousands)

Business-type Activities

Revenues for business-type activities increased by $34.5 million, primarily due to higher volumes at the airport and higher volumes and rate increases for sewer and related services. Federal pandemic legislation also provided additional grant revenues for the airport. Higher fees for airport revenues included parking, car rental, and terminal concessions, which increased steadily from pandemic lows given the rebound in airport passenger traffic. The airport also became a medium-sized hub in 2021. The airport received $20.4 million of federal pandemic grant revenue in FY 2022, versus $9.9 million in FY 2021. These revenues were used to support airport personnel and operations costs, including onsite fire and police services. The airport also had higher revenue for airport improvement grants compared to FY 2021. Other revenue was much lower largely due to unrealized losses in fixed-income investments.

2022 Revenues by Source - Business-Type Activities

Unrestricted investment earnings: 2.2%

68.1%

Expenses for business-type activities increased by $33.4 million. M&O costs increased in Airport and Water Renewal due to expanded operations, by $6.5 million and $1.9 million, respectively. Solid Waste services contracts had higher costs in FY 2022 of $2.0 million, due to higher contract rates and increased volume. High inflation also contributed to higher costs in FY 2022. Costs in Housing funds increased significantly in FY 2022, offset by $9.2 million due to federal emergency rental assistance, a program that began due to the pandemic. More funding was allocated to the City, which was expended as pass-through grants to the local housing authority, to provide assistance to qualifying renters on the City’s behalf. Higher personnel costs of $8.7 million for both Airport and Water Renewal are due to expanded operations and pension expense adjustments in both funds. There was also an increase in overtime costs; however, most personnel categories were under budget due to staff vacancies.