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REGULAR MEETING of the AIRPORT ADVISORY COMMISSION (AAC) August 13, 2025 3:00 PM 6310 WILHELMINA DELCO DR., ROOM 1406 AUSTIN, TEXAS 78752 Some members of the Commission may be participating via videoconference. Livestream of the meeting will be available at ATXN1 https://www.austintexas.gov/watch-atxn-live Audio of the meeting will be available as an alternative to attending in person. Please email Ammie Calderon at ammie.calderon@flyaustin.com by Noon of the day of the meeting for dial-in details. Public comment for general communication and all agenda items will be allowed in-person or remotely via telephone. In-person registration is available for speakers who sign up at the meeting location prior to the meeting being called to order. Registration to speak remotely is available for speakers who have provided an email to Ammie Calderon at ammie.calderon@flyaustin.com, no later than Noon of the day before the meeting. CURRENT BOARD MEMBERS Patrick Rose, Chair Bakari Brock, Vice-Chair Doyle Valdez, Secretary Jeff Eller Mike Trimble Fang Fang Jonathan Coon Cole Wilson Lyn Hendricks Scott Madole Susan Turrieta AGENDA CALL TO ORDER PUBLIC COMMUNICATION: GENERAL Public communication for items not on the agenda. The first 5 registered speakers will each be allowed a three-minute allotment to address the Airport Advisory Commission on an item that is not posted on the agenda. Please refer to the registration instructions above. 1 1Public communication for items on the agenda. Registered speakers will each be allowed a three-minute allotment to address the Airport Advisory Commission on an item that is posted as a Briefing, Discussion/Action, or Discussion item. Please refer to the registration instructions above. APPROVAL OF MINUTES 1. Approve the minutes of the AAC regular meeting on July 9, 2025 STAFF BRIEFINGS 2. Briefing on June 2025 Financial Results presented by Rajeev Thomas, Chief Financial Officer 3. Briefing on Air Service Update provided by Jamy Kazanoff, AUS Air Service Development 4. Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer 5. Briefing on Austin Aviation’s Fiscal Year 2025-2026 Budget presented by Rajeev Thomas, Chief Financial Officer DISCUSSION/ACTION ITEMS 6. Authorize negotiation and execution of Signatory Airline Use and Lease Agreements and Signatory Cargo Agreements with the commercial passenger airlines and commercial cargo carriers or companies for use of the Austin-Bergstrom International Airport, for an initial term starting January 1, 2026, and ending September 30, 2035, with a two-year extension option; and authorize negotiation and execution of Non-Signatory Airline Agreements and Non-Signatory Cargo Agreements for a month-to-month term with those carriers or companies that choose not to become signatories under the new signatory agreements. Funding: There is no revenue impact for Fiscal Year 2024-2025 for the Aviation Department’s Operating Budget due to the proposed January 1, 2026, effective date for the Agreements. 7. Authorize a contract for modernization of an elevator at Austin-Bergstrom International Airport for the Department of Aviation with Schindler Elevator Corp. for a term of fifteen months in an amount not to exceed $724,758. Funding: $724,758 is available in the Capital Budget of the Department of Aviation. [Note: Sole source contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established.] DISCUSSION ITEMS 2 28. Review City Council action at the July 24, 2025 meeting – [Item 48] Authorize a contract for airfield marking paint for the Department of Aviation with Crown USA Incorporated, for an initial term of four years with one 1-year extension option in an amount not to exceed $1,300,000. Funding: $65,000 is available in the Operating Budget of the Department of Aviation, and funding for the remaining contract term is contingent upon available funding in future budgets. Approved on consent. 9. Review City Council action at the July 24, 2025 meeting – [Item 81] Authorize a contract for design and construction services for the Austin Bergstrom International Airport Integrated Baggage Handling System Project for the Department of Aviation with Beumer Corporation, in an amount not to exceed $320,000,000. Funding: $320,000,000 is available in the Capital Budget of the Department of Aviation. Approved on consent. FUTURE AGENDA ITEMS NEXT REGULAR MEETING The next regular meeting of the AAC is currently scheduled for Wednesday, September 10, 2025. ADJOURNMENT The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days before the meeting date. Please call Ammie Calderon, Aviation Department, at (512) 530-6605 for additional information; TTY users route through Relay Texas at 711. For more information on the Airport Advisory Commission, please contact Jason Alexander at jason.alexander@flyaustin.com. 3 3 AIRPORT ADVISORY COMMISSION ITEM 1 - APPROVAL OF MINUTES July 9, 2025 Regular Meeting 4 AIRPORT ADVISORY COMMISSION (AAC) REGULAR MEETING MINUTES July 9, 2025, 3:00 PM The Airport Advisory Commission convened in a regular meeting on July 9, 2025, at 6310 Wilhelmina Delco Dr., Room 1405 Austin, Texas 78752 Chair Patrick Rose called the regular meeting to order at 3:07 p.m. Commissioners in Attendance: Patrick Rose, Chair Bakari Brock, Vice Chair Jeff Eller Mike Trimble Fang Fang Susan Turrieta Commissioners in Attendance Remotely: Doyle Valdez, Secretary Jonathan Coon Lyn Hendricks Commissioners Absent: Cole Wilson Scott Madole PUBLIC COMMUNICATION: GENERAL APPROVAL OF MINUTES 1. Approve the minutes of the AAC regular meeting on June 11, 2025. At motion to approve was made by Commissioner Valdez; Commissioner Eller seconded. The motion passed on a 8-0-0-3 vote. Commissioners Madole, Fang, and Wilson were absent at this vote. 5 STAFF BRIEFINGS 2. Briefing on April 2025 Financial Results presented by Rajeev Thomas, Chief Financial Officer Rajeev Thomas provided the briefing. 3. Briefing on Air Service Update provided by Jamy Kazanoff, AUS Air Service Development Jamy Kazanoff provided the briefing. 4. Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer Shane Harbinson, Chief Development Officer, provided the briefing on behalf of Lyn Estabrook. 5. Briefing on local and regional growth trends presented by Lila Valencia, City of Austin Demographer Lila Valencia provided the briefing. DISCUSSION/ACTION ITEMS 6. Discussion and possible action to approve the Airport Advisory Commission Annual Internal Review covering the period between July 1, 2024 through June 30, 2025 and goals for the upcoming year. Chair Rose proposed several amendments to the Annual Internal Review. A first motion to approve was made by Commissioner Rose; Commissioner Turrieta seconded. The motion passed on a 9-0-0-2 vote. The appendments were approved. Commissioners Wilson and Madole were absent at this vote. After acceptance of Amendments, a base motion to approve was made by Commissioner Valdez; Commissioner Trimble seconded. The motion passed on a 9-0-0-2 vote. Commissioners Wilson and Madole were absent at this vote. 7. Authorize a contract for airfield marking paint for the Department of Aviation with Crown USA Incorporated, for an initial term of four years with one 1-year extension option in an amount not to exceed $1,300,000. Funding: $65,000 is available in the Operating Budget of the Department of Aviation. [Note: This contract will be awarded in compliance with City Code Chapter 2-9B (Minority-Owned and Women Owned Business Enterprise Procurement Program). For the goods required for this solicitation, there were no subcontracting opportunities, therefore, no subcontracting goals were established.] 6 A motion to approve was made by Commissioner Turrieta; Commissioner Valdez seconded. The motion passed on a 9-0-0-2 vote. Commissioners Wilson and Madole were absent at this vote. 8. Authorize a contract for the design and construction services for the Austin Bergstrom International Airport Integrated Baggage Handling System project for the Department of Aviation with Beumer Corporation, in an amount not to exceed $320,000,000. Funding: $320,000,000 is available in the Capital Budget of the Department of Aviation. [Note: This contract will be awarded in compliance with 49 CFR Part 26 (Disadvantaged Business Enterprise Program) and City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goal with 15.00% DBE participation.] A motion to approve was made by Commissioner Trimble; Commissioner Brock seconded. The motion passed on a 9-0-0-2 vote. Commissioners Wilson and Madole were absent at this vote. DISCUSSION ITEMS NONE FUTURE AGENDA ITEMS NONE NEXT REGULAR MEETING The next regular meeting of the AAC is scheduled for Wednesday, August 13, 2025. ADJOURNMENT Patrick Rose adjourned the meeting at 4:28 p.m. without objection. The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days before the meeting date. Please call Ammie Calderon, Aviation Department, at (512) 530-6605 for additional information; TTY users route through Relay Texas at 711. For more information on the Airport Advisory Commission, please contact Jason Alexander at jason.alexander@flyaustin.com. 7 AIRPORT ADVISORY COMMISSION ITEM 2 – STAFF BRIEFINGS June 2025 Financial Results presented by Rajeev Thomas, Airport Chief Financial Officer. 8 TO: Airport Advisory Commissioners MEMORANDUM FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department DATE: August 13, 2025 SUBJECT: Austin-Bergstrom International Airport (AUS) Update June 2025 Financial Results Passenger traffic totaled 2,014,198 in June 2025, an increase of 0.1% compared to June 2024. Average daily departures increased from 260 in June 2024 to 277 in June 2025, an increase of 17 daily departures or 6.1%. Table #1 FY 2025 June FY 2024 June Variance Fav (Unfav) FY 2025 YTD FY 2024 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements Net Income 1,023,218 1,022,786 1,206,250,657 1,156,801,924 0.0% 4.3% 7,965,086 8,324,673 9,786,731,378 10,166,201,603 10,867 $32,164,076 $13,982,269 12,677 (14.3%) 104,759 112,940 $28,499,587 $12,130,180 $3,664,489 $261,004,061 $236,992,843 $24,011,219 ($1,852,089) $122,312,822 $110,635,356 ($11,677,466) $23,234,821 $20,089,215 ($3,145,606) $190,008,685 $173,625,472 ($16,383,212) $8,929,255 $8,410,373 $518,883 $70,995,377 $63,367,371 $7,628,006 (4.3%) (3.7%) (7.2%) Table #1 illustrates June 2025’s enplanements totaled 1,023,218, an increase of 0.04% compared to June 2024. Landing weights totaled 1.2 billion pounds in June 2025 representing an increase of 4.3% compared to June 2024. Cargo volume totaled 10,867 tons in June 2025, a decrease of 14.3% compared to June 2024. June 2025 cargo volume decreased primarily due to changes in FedEx cargo activity. June 2025 operating revenue totaled $32.2M, an increase of 12.9% or $3.7M compared to June 2024. The increase in operating revenue results from updated airline rates and charges in FY2025 and growth in parking revenues. Operating revenue in June 2025 is composed of 48.7% airline revenue, 49.9% non-airline revenue, and 1.4% interest income. Airport operating expenses totaled $14.0M for the month, an increase of 15.3% or $1.9M compared to June 2024. The increase in operating expenses is primarily driven by growth in airport staffing, increased APD personnel costs, and elevated commodity costs for warehouse stock. AUS reported an $8.9M surplus in June 2025, an increase of $0.5M compared to June 2024. 9 Fiscal Year 2025 Financial Results FY2025 Year to Date (YTD) Operating Revenue totals $261.0M compared to $237.0M in FY2024, a 10.1% increase. Airport Operating Expenses totaled $122.3M YTD in FY2025 compared to $110.6M in FY2024, a 10.6% increase. Net income totals $71.0M YTD in FY2025 compared to $63.4M in FY2024, a 12.0% increase. Table #2 Operating Revenue Airport OPEX Total Requirements Net Income FY 2025 FY 2025 FY 2025 Budget vs. YTD Variance Budget vs. YTD Variance CYE vs. YTD Variance CYE vs. YTD Variance Approved Budget - Seasonalized CYE - Seasonalized YTD $ Fav (Unfav) % Fav (Unfav) $ Fav (Unfav) $ Fav (Unfav) $261,904,926 $256,213,076 $261,004,061 $123,164,551 $121,787,931 $122,312,822 $201,303,486 $200,676,866 $190,008,685 $60,601,440 $55,536,210 $70,995,377 ($900,865) $851,729 $11,294,802 $10,393,937 (0.3%) 0.7% 5.6% $4,790,985 ($524,891) $10,668,182 17.2% $15,459,166 1.9% (0.4%) 5.3% 27.8% AUS delivered favorable financial performance compared to FY2025 budget and current year estimate on a seasonalized basis. As presented in Table #2, FY2025 revenues are 0.3% or $0.9M below seasonalized budget because of decline in YTD passenger traffic compared to budget. Operating revenue exceeds current year estimate by 1.9% or $4.8M. Airport operating expenses are 0.7% or $0.9M below seasonalized budget and 0.4% or $0.5M above current year estimate. AUS reports net income of $71.0M, which exceeds the seasonalized budget estimate by 17.2% or $10.4M and exceeds current year estimate by 27.8% or $15.5M. Attachments: June 2025 - AAC Financial Report 10 CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 9 Month(s) ended June 30, 2025 FY 2025 Budget Budget Seasonalized 9 month(s) FY 2025 CYE CYE Seasonalized 9 month(s) Y-T-D to Budget Y-T-D to CYE Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) Variance Fav (Unfav) % Variance Fav (Unfav) 1 19 1 REVENUE AIRLINE REVENUE Landing Fees Terminal Rental & Other Fees TOTAL AIRLINE REVENUE NON-AIRLINE REVENUE Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees TOTAL NON-AIRLINE REVENUE 59,625,915 111,271,727 170,897,642 44,013,167 83,120,734 127,133,901 59,625,915 111,271,727 170,897,642 44,013,167 83,120,734 127,133,901 46,225,593 84,670,299 130,895,892 2,212,426 1,549,565 3,761,991 81,247,697 11,615,065 21,948,757 20,109,576 7,508,056 5,148,000 27,509,304 175,086,455 59,920,178 8,596,252 17,120,031 15,212,894 5,679,844 3,989,700 20,652,276 131,171,175 77,751,861 11,043,783 21,477,962 20,213,799 7,094,410 5,983,168 25,448,019 169,013,002 56,140,684 8,322,493 16,748,151 15,242,568 5,306,844 4,711,958 19,209,758 125,682,454 56,623,468 8,438,229 16,400,468 15,352,433 5,207,258 5,098,102 19,393,776 126,513,732 (3,296,710) (158,024) (719,563) 139,539 (472,586) 1,108,402 (1,258,500) (4,657,443) Interest Income TOTAL REVENUE 5,000,000 350,984,097 3,599,850 261,904,926 4,600,000 344,510,644 3,396,721 256,213,076 3,594,437 261,004,061 (5,413) (900,865) OPERATING REQUIREMENTS Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services TOTAL OPERATING EXPENSES Debt Service 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money 2022 New Money TOTAL Net Debt Service OTHER REQUIREMENTS Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll Additional Retirement Contribution Operating Reserve CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Trf to Subordinate Obligation TOTAL OTHER REQUIREMENTS 98,701,583 8,569,052 54,005,824 16,962,223 178,238,682 68,699,807 5,895,998 36,635,898 11,932,848 123,164,551 103,992,500 7,473,100 48,351,482 16,921,600 176,738,682 71,942,714 5,065,183 32,862,725 11,917,309 121,787,931 72,004,669 5,010,246 33,495,331 11,802,576 122,312,822 (3,304,862) 885,752 3,140,567 130,272 851,729 5,412,539 7,077,844 10,034,715 14,285,349 17,724,156 26,519,009 81,053,612 663,739 7,153,897 2,831,183 238,285 5,411,877 3,060,677 633,716 584,624 2,979,025 0 23,557,023 4,059,530 5,308,383 7,526,036 10,716,537 13,293,156 19,671,601 60,575,243 497,804 5,365,423 2,123,387 178,714 3,954,833 2,295,508 475,287 438,468 2,234,269 0 17,563,693 5,412,539 7,077,844 10,034,715 14,285,349 17,724,156 26,519,009 81,053,612 663,739 7,153,897 2,831,183 238,285 5,411,877 3,060,677 633,716 584,624 2,979,025 1,500,000 25,057,023 4,059,530 5,308,383 7,526,036 10,716,537 13,293,156 19,671,601 60,575,243 497,804 5,365,423 2,123,387 178,714 3,954,833 2,295,508 475,287 438,468 2,234,269 750,000 18,313,693 3,471,189 4,408,372 4,280,510 8,841,101 11,366,373 16,652,086 49,019,630 497,804 5,365,423 2,123,387 178,714 3,954,833 2,986,826 475,287 438,468 2,234,269 421,221 18,676,233 588,341 900,011 3,245,527 1,875,436 1,926,784 3,019,515 11,555,613 0 0 0 0 0 (691,319) 0 0 0 (421,221) (1,112,540) 5.0% 1.9% 3.0% (5.5%) (1.8%) (4.2%) 0.9% (8.3%) 27.8% (6.1%) (3.6%) (0.2%) (0.3%) (4.8%) 15.0% 8.6% 1.1% 0.7% 14.5% 17.0% 43.1% 17.5% 14.5% 15.3% 19.1% 0.0% 0.0% 0.0% 0.0% 0.0% (30.1%) 0.0% 0.0% 0.0% N/A (6.3%) 2,212,426 1,549,565 3,761,991 482,784 115,736 (347,683) 109,865 (99,586) 386,144 184,018 831,277 197,716 4,790,985 (61,956) 54,937 (632,606) 114,733 (524,891) 588,341 900,011 3,245,527 1,875,436 1,926,784 3,019,515 11,555,613 0 0 0 0 0 (691,319) 0 0 0 328,779 (362,540) 5.0% 1.9% 3.0% 0.9% 1.4% (2.1%) 0.7% (1.9%) 8.2% 1.0% 0.7% 5.8% 1.9% (0.1%) 1.1% (1.9%) 1.0% (0.4%) 14.5% 17.0% 43.1% 17.5% 14.5% 15.3% 19.1% 0.0% 0.0% 0.0% 0.0% 0.0% (30.1%) 0.0% 0.0% 0.0% 43.8% (2.0%) TOTAL REQUIREMENTS 282,849,317 201,303,486 282,849,317 200,676,866 190,008,685 11,294,802 5.6% 10,668,182 5.3% EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS 68,134,780 60,601,440 61,661,327 55,536,210 70,995,377 10,393,937 17.2% 15,459,166 27.8% Note: Columns may not add to totals shown because of rounding 11 CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year Fiscal YTD - This Year vs. Last Year FY25 (Jun 25) vs FY24 (Jun 24) FY25 (Oct 24 - Jun 25) vs FY24 (Oct 23 - Jun 24) FY25 Jun-25 FY24 Jun-24 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY25 YTD Jun-25 FY24 YTD Jun-24 Fav (Unfav) $ Variance Fav (Unfav) % Variance 5,711,216 9,966,324 15,677,540 4,585,011 8,334,621 12,919,632 1,126,205 1,631,703 2,757,908 8,237,595 910,703 1,672,204 1,905,049 616,895 552,090 2,150,647 16,045,184 7,382,110 866,089 1,744,243 1,848,746 644,474 480,292 2,119,770 15,085,723 855,485 44,614 (72,039) 56,303 (27,579) 71,798 30,877 959,460 24.6% 19.6% 21.3% 11.6% 5.2% (4.1%) 3.0% (4.3%) 14.9% 1.5% 6.4% 46,225,593 84,670,299 130,895,892 39,171,470 70,912,133 110,083,603 7,054,124 13,758,166 20,812,289 56,623,468 8,438,229 16,400,468 15,352,433 5,207,258 5,098,102 19,393,776 126,513,732 55,020,914 8,161,007 17,255,602 15,293,925 5,269,416 4,319,489 17,612,975 122,933,327 1,602,553 277,221 (855,134) 58,508 (62,158) 778,613 1,780,801 3,580,405 441,353 32,164,076 494,232 28,499,587 (52,879) 3,664,489 (10.7%) 12.9% 3,594,437 261,004,061 3,975,913 236,992,843 (381,475) 24,011,219 8,205,499 558,360 3,815,690 1,402,720 13,982,269 7,097,110 444,357 3,285,226 1,303,487 12,130,180 (1,108,389) (114,004) (530,464) (99,232) (1,852,089) 451,003 589,820 836,226 1,189,604 1,477,000 2,282,470 6,826,123 55,312 596,158 235,932 19,857 416,298 331,870 52,810 48,719 248,252 421,221 2,426,428 451,338 589,820 836,226 1,196,330 1,477,104 1,734,242 6,285,060 51,658 554,544 179,559 16,837 290,286 393,263 43,978 38,123 105,726 0 1,673,974 334 0 0 6,726 104 (548,228) (541,063) (3,653) (41,614) (56,373) (3,020) (126,012) 61,394 (8,832) (10,596) (142,526) (421,221) (752,454) (15.6%) (25.7%) (16.1%) (7.6%) (15.3%) 0.1% 0.0% 0.0% 0.6% 0.0% (31.6%) (8.6%) (7.1%) (7.5%) (31.4%) (17.9%) (43.4%) 15.6% (20.1%) (27.8%) (134.8%) N/A (45.0%) 72,004,669 5,010,246 33,495,331 11,802,576 122,312,822 65,657,355 4,366,862 28,444,924 12,166,215 110,635,356 (6,347,314) (643,384) (5,050,406) 363,638 (11,677,466) 3,471,189 4,408,372 4,280,510 8,841,101 11,366,373 16,652,086 49,019,630 497,804 5,365,423 2,123,387 178,714 3,954,833 2,986,826 475,287 438,468 2,234,269 421,221 18,676,233 4,060,966 5,308,383 7,526,037 10,777,323 13,293,219 6,813,275 47,779,202 464,925 4,990,898 1,616,027 151,537 2,757,716 3,539,371 395,803 343,103 951,535 0 15,210,913 589,777 900,011 3,245,527 1,936,222 1,926,846 (9,838,810) (1,240,427) (32,879) (374,525) (507,360) (27,177) (1,197,118) 552,545 (79,484) (95,365) (1,282,734) (421,221) (3,465,319) 18.0% 19.4% 18.9% 2.9% 3.4% (5.0%) 0.4% (1.2%) 18.0% 10.1% 2.9% (9.6%) 10.1% (9.7%) (14.7%) (17.8%) 3.0% (10.6%) 14.5% 17.0% 43.1% 18.0% 14.5% (144.4%) (2.6%) (7.1%) (7.5%) (31.4%) (17.9%) (43.4%) 15.6% (20.1%) (27.8%) (134.8%) N/A (22.8%) Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue Non-Airline Revenue Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees Total Non-Airline Revenue Interest Income Total Operating Revenue Operating Requirements Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services Total Operating Expense Debt Service 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money 2022 New Money Total Debt Service Other Requirements Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll Additional Retirement Contribution Operating Reserve CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Trf to Subordinate Obligation Total Other Requirements Total Requirements 23,234,821 20,089,215 (3,145,606) (15.7%) 190,008,685 173,625,472 (16,383,212) (9.4%) SURPLUS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS Note: Columns may not add to totals shown because of rounding 8,929,255 8,410,373 518,883 6.2% 70,995,377 63,367,371 7,628,006 12.0% 12 AIRPORT ADVISORY COMMISSION ITEM 3 – STAFF BRIEFINGS Air Service Update presented by Jamy Kazanoff, Air Service Development. 13 August 2025 Air Service Snapshot AUS quarterly seat comparisons, Q3 2025 and Q4 2025 compared to 2019 (pre-Covid) in leE chart, and compared to year-over-year (YOY) 2024 in right chart: Source: Cirium schedule data as of July 21, 2025. Highlights of recent air service announcements/developments include: • Aeromexico reverted back to 1x B737 from Aug 18 ‘25 onwards as opposed to 2x E190 due to downturn in U.S. demand • Air Canada will serve YUL May 2 – Oct. 24 ’25 and YVR May 1 – Oct. 25 ’25; YVR returned at 4/wk and increased to 5/wk for June – Sept ‘25; extended YUL 3/Wk for Oct 25 ’25 – Mar 27 ‘26 (now year-round) • Allegiant extended schedules for May 14 – Sept. 2 ’25 and will serve 12 markets: AVL CVG DSM GRR IAD IND LAS PIT PVU SFB SRQ & TYS; extended schedules for Sept. 3 – Nov. 18 ’25 and will serve 6 markets: AVL CVG DSM GRR PVU TYS; extended schedules for Nov 19 ’25 – Feb 10 ’26 and will serve 7 markets: AVL, CVG, DSM, GRR, PVU, SRQ & TYS • American summary of service changes: o AA will serve 13 markets from AUS in Q3 2025 with 22% reducfon in seat capacity YOY o Service for college football games: CMH (Aug 29/31) GNV (Oct 3/5) LEX (Nov 17/19) ATL (Nov 14/16) & XNA (Nov 21/23) o Service for EPIC IGM Conf: MSN (outbound Aug 17/return Aug 21) o Service for Masters: AGS on April 6, 11 and 14 • BriNsh Airways added LHR #2 daily, eff. Mar. 31 ‘25 which will operate 6/Wk (all days except Sunday); second frequency in Summer 2025 (March 20-Oct. 25 ‘25) will be mix of B787-8 and -9 • Delta summary of service changes: o New markets: IND, JAX & MEM (eff. May 7 ’25), SFO & TPA (eff. June 8 ’25), CUN (eff. Dec. 20 ’25) o SJD originally planned as daily from Dec 20 ’25 - Jan 5 ’26, will be extended through April 12 ‘26! 14 o PSP will be served seasonally from Nov 8 ‘25 – April 12 ’26, increasing from Saturday only to daily from Dec 20 ’25 - March 7 ’26, and on March 8 will go back to Saturday only through April 25 ’26 o ECP decreased from daily to Saturday only from Jan 5 - March 8 ‘26 o College football service: GNV for weekend of Oct. 3 ’25, LEX for Oct. 17 ’25 weekend and XNA for Nov. 21 ’25 weekend o HRL last op. on June 7 ’25 but MAF will increase 2x->3x eff. June 8 ’25 • • FronNer new service to MIA 3/Wk and PHL 3/Wk started May 22 ’25; new service to SAN 4/Wk started June 13 ’25; extended schedules for Aug 19 – Nov 19 ‘25 and will serve 11 markets: ATL, CLE, CVG, DEN, LAS, MCO, MIA, ORD, PHL, PHX & SAN; extended schedules for Nov 20 ’25 – Jan 6 ’26 and will serve same 11 markets JetBlue added 2x FLL service starfng Nov 20 ’25 with 162-seat A320 (last served April 30, 2024) • • KLM AMS will be served 3/wk in 2025 except for June with 5/wk • LuEhansa downgauged FRA from 294-seat B787-9 to 255-seat A330 for Mar. 31-Oct. 25 ’25; will serve FRA on Tues/Thur/Sun instead of Mon/Thur/Sat for the winter season eff. Oct. 26 Southwest summary of service changes: o BOS will be served daily eff. June 5 ’25 and SFO daily service eff. Aug. 5 ‘25 o Added new 6/Wk service to JAX effecfve Oct. 2 ’25 o Added SDF for UT football (outbound Oct 17 ‘25/inbound Oct 19 ‘25) o ORD service will be disconfnued amer Nov. 1 ’25 o Southwest daily departures for 2025-2026 shown below (128 daily departures for Oct. 2-Nov. 1 is a new record for Southwest at AUS): o Extended schedules for Jan 6-26 ’26, ranging from 53 departures on Saturdays (+6 YOY) to 109 departures on Sundays and MLK weekend (+3 YOY) o Extended schedules for Jan 27-March 4 ’26, ranging from 53 departures on off-peak Saturdays (+6 YOY) to 118 departures on peak days (+4 YOY) • Spirit added DTW on June 12 ’25 with 4/Wk; extended schedules for Nov 19 ’25 – March 3 ’26 and will serve 6 markets: DTW, EWR, FLL, LAS, LAX & MCO • United service for college football games: CMH (Aug 29 weekend) and XNA (Nov 21 weekend) • WestJet YYC returned to AUS on May 12 ’25 and increased from twice weekly to three fmes weekly frequency for the 2025 season; YVR service is cancelled for 2025 and will not start on May 11 ’25 due to downturn in U.S. demand • August ‘25 v August ‘24 (down 5 desNnaNons based on monthly schedules): o + desfnafons: JAX, MEM & MKE o – desfnafons: BZN, CZM, EUG, FSD, HNL, OMA, SDF & VPS 15 New AUS Nonstop Service for 2025: Destination San Francisco, CA (SFO) Tampa, FL (TPA) Detroit, MI (DTW) San Diego, CA (SAN) San Francisco, CA (SFO) Jacksonville, FL (JAX) Cancun, Mexico (CUN) Cabo San Lucas (SJD) Palm Springs, CA (PSP) Ft. Lauderdale, FL (FLL) Airline Delta Delta Spirit Frontier Southwest Southwest Delta Delta Delta JetBlue Start Date 6/8/2025 6/8/2025 6/12/2025 6/13/2025 8/5/2025 10/2/2025 12/20/2025 12/20/2025 11/8/2025 11/20/2025 Type Year-round Year-round TBD TBD Year-round Year-round Seasonal Seasonal Seasonal TBD Other Airlines Serving the Route Alaska & United Southwest Delta Alaska & Southwest Delta & United Delta American & Southwest American & Southwest New Route Southwest & Spirit Source: Cirium schedule data. August air service comparison: Source: Cirium schedule data as of July 21, 2025. Current AUS air service: Source: Cirium schedule data. 16 August 2025 v. 2024 carrier seat share comparison: Source: Cirium schedule data as of July 21, 2025. AUS ConnecNng Traffic Trends: Based on U.S. DOT O&D Passenger Survey, Cirium FM Traffic and ABIA stafsfcs: 14.1% of AUS passengers in Q1 2025 were connecfng between flights at the Airport. One-Way DomesNc Fares for U.S. Medium & Large Hub Airports Source: U.S. DOT, O&D Passenger Survey, YE Q1 2025. 17 Top 10 AUS DomesNc Markets Without Nonstop Service (Source: YE Q1 2025, DOT O&D Survey) Top 10 AUS InternaNonal Markets Without Nonstop Service (Source: YE Apr. 2025, FM Traffic) 1 2 3 4 5 6 7 8 9 Honolulu (HNL) Harrord (BDL) Richmond (RIC) Boise (BOI) Ft. Myers (RSW) Norfolk (ORF) Bozeman (BZN) Birmingham (BHM) Buffalo (BUF) 1 2 3 4 5 6 7 8 9 Paris (CDG) San Jose (SJO) Rome (FCO) Seoul (ICN) Sao Paulo (GRU) Dublin (DUB) Madrid (MAD) Tokyo (HND) Liberia (LIR) 10 Savannah (SAV) 10 Barcelona (BCN) 18AUS Airline Codes: AA AC AM AS B6 BA American Airlines Air Canada Aeromexico Alaska Airlines JetBlue Airways Brifsh Airways CM Copa Airlines DL F9 G4 Delta Air Lines Fronfer Airlines Allegiant Air Airport Codes: HA KL LH NK SY UA VB WN WG WS Hawaiian Airlines KLM-Royal Dutch Airlines Lumhansa German Airlines Spirit Airlines Sun Country Airlines United Airlines VivaAerobus Southwest Airlines Sunwing Airlines WestJet 19Albuquerque, NM MEM Memphis, TN ABQ AMA AMS ANC ATL AVL BDL Amarillo, TX Amsterdam, Netherlands Anchorage Atlanta, GA Asheville, NC Harrord, CT BHM Birmingham, AL BNA BOI BOS BUR BWI CHS CLE CLT Nashville, TN Boise, ID Boston, MA Burbank, CA Balfmore, MD Charleston, SC Cleveland, OH Charlote, NC CMH Columbus, OH CUN CVG CZM DAL DCA DEN DFW DSM DTW ECP ELP EUG EWR Cancun, Mexico Cincinnaf, OH Cozumel, Mexico Dallas, TX Washington Reagan, DC Denver, CO Dallas/Ft. Worth, TX Des Moines, IA Detroit, MI Panama City, FL El Paso, TX Eugene, OR Newark, NJ MEX MFE MIA MKE MSN MSP MSY MTY OAK OGG OKC Mexico City, Mexico McAllen, TX Miami, FL Milwaukee, WI Madison, WI Minneapolis/St. Paul, MN New Orleans, LA Monterrey, Mexico Oakland, CA Kahului – Maui, HI Oklahoma City, OK OMA Omaha, NE ONT ORD ORF PBI PDX PHL PHX PIT PSP PUJ PTY PVR PVU RDU RNO RSW SAN Ontario, CA Chicago O’Hare, IL Norfolk, VA Palm Beach, FL Portland, OR Philadelphia, PA Phoenix, AZ Pitsburgh, PA Palm Springs, CA Punta Cana, Dominican Rep. Panama City, Panama Puerto Vallarta, Mexico Provo, UT Raleigh-Durham, NC Reno, NV Ft. Myers, FL San Diego, CA 20SAT SDF SEA SFB SFO SGF SJC SJD SJU SLC SMF SNA SRQ STL TPA TUL TYS VPS YUL YVR YYC YYZ San Antonio, TX Louisville, KY Seatle, WA Sanford, FL San Francisco, CA Springfield, MO San Jose, CA San Jose del Cabo, Mexico San Juan, Puerto Rico Salt Lake City, UT Sacramento, CA Orange County, CA Sarasota, FL St. Louis, MO Tampa, FL Tulsa, OK Knoxville, TN Valparaiso, FL Montreal, Canada Vancouver, Canada Calgary, Canada Toronto, Canada FLL FRA FSD GNV GRR HNL HOU HRL IAD IAH IND JAX JFK LAS LAX LBB LGA LGB LHR LIR MAF MCI MCO Ft. Lauderdale, FL Frankfurt, Germany Sioux Falls, SD Gainesville, FL Grand Rapids, MI Honolulu, HI Houston Hobby, TX Harlingen, TX Washington Dulles, DC Houston Interconfnental, TX Indianapolis, IN Jacksonville, FL New York JFK, NY Las Vegas, NV Los Angeles, CA Lubbock, TX New York – LaGuardia, NY Long Beach, CA London, UK Liberia, Costa Rica Midland/Odessa, TX Kansas City, MO Orlando, FL MDW Chicago Midway, IL Submi‘ed Aug 3, 2025 Kazanoff 21AIRPORT ADVISORY COMMISSION ITEM 4 – STAFF BRIEFINGS Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer 22 Journey With AUS - Airport Expansion & Development Program Active Projects Update Airport Advisory Commission August 2025 Lyn Estabrook Deputy Chief – Planning & Development 23Table of Contents ● Project Updates ○ West Infill and TSA Checkpoint 3 Expansion ○ West Gate Expansion ○ ○ Parking and Landside: Yellow Garage Atrium Infill ○ ○ ○ ○ Airfield Infrastructure – Midfield Taxiways Utility Infrastructure Campus-Wide Central Utility Plant Relocation Concourse B and Tunnel Arrivals and Departures Hall ○ ● Appendix ○ ○ ○ Project Prime Firms & RCAs Project Details Project Descriptions 2 24Project Updates 25Program Overview Journey With AUS projects are developed through a five–phase process: 26West Infill & TSA Checkpoint 3 Expansion *As part of the Outbound Baggage Handling System project Latest Updates ○ Interior finishes continue ○ Mechanical and electrical system testing continue ○ New EDS machines are in place and conveyors are being electrically connected Anticipated Timeline ○ Build: Q1 2024 – Q1 2026 Design-Build: Gensler/Whiting Turner 5 27West Gate Expansion Latest Updates o Exterior panels, flashing, and air barrier continue o Major CHWS/R piping and pumps installed in the pump room o Ductwork, plumbing, electrical, and insulation continue on all 3 levels o Mason is almost complete in the tug tunnel and apron restrooms ○ The installation and testing were completed on the 8” water tie-in ○ Gate 22 is back in service Anticipated Timeline ○ Build: Q2 2023 – Q1 2026 6 Photo of the West Gate project under construction. Designer: Page Construction: Hensel Phelps 28Airfield Infrastructure: Midfield Taxiways and Maintenance Ramp Expansion Latest Updates ○ Construction of new roadways and parking lots are ongoing ○ Construction of waterline, power, communication and storm utilities ongoing ○ Utility removals and site cleanup are ongoing ○ Reviewing GMP Proposal for Maintenance Ramp Expansion ○ Held Contractor Outreach Event Anticipated Timeline ○ Build: Q4 2024 – Q2 2027 Designer: RS&H Construction: Austin Bridge & Road 7 29Parking and Landside: Yellow Garage Latest Updates ○ Completed drilling 317 of 428 piers ○ Completed 3 deck pours ○ 100% roadway drawings reviewed with comments Anticipated Timeline ○ Design: Q3 2024 – Q3 2025 ○ Build: Q1 2025 – Q1 2028 Design rendering; final design specifications and features subject to change as the project progresses. Designer: PGAL Construction: Austin Commercial 8 Construction photo showing project progress as of July 14, 2025. 30Atrium Infill Latest Updates ○ Demolition continues ○ Clear Channel temporary monitors installed ○ Steel erection scheduled to start in August ○ Coordination with Art in Public Places continues Anticipated Timeline ○ Design: Q2 2024 – Q2 2025 ○ Build: Q2 2025 – Q3 2026 Designer: Corgan Construction: Whiting-Turner 9 31Utility Infrastructure Campus-Wide (UICW) Latest Updates ○ UICW 30% OPCC reconciliation and value engineering work sessions will take place in July 2025 ○ UICW 60% detailed design is due mid- September 2025 Anticipated Timeline ○ Design: Q3 2024 – Q1 2026 ○ Preconstruction: Q1 2025 – Q1 2026 ○ Build: Q4 2025 – Q4 2027 Designer: HDR Construction: Sundt/Archer Western 10 32Central Utility Plant Relocation Latest Updates ○ ○ 30% Site Design: June 25, 2025- Review Complete 30% Building Design: July 22, 2025- In review ○ Design Phase Services proposal in review ○ Reclaimed Water Main Extension proposal in review Anticipated Timeline ○ Design: Q4 2024 – Q1 2026 ○ Build: Q2 2026 – Q2 2028 Design-Build: JE Dunn/Jacobs Current Central Utility Plant 11 33Concourse B and Tunnel Latest Updates - Currently In Scope: ○ New double loaded midfield concourse consisting of 20+ gates, passenger and tenant amenities and pedestrian moving sidewalks, baggage handling system and utility tunnel cells ○ Apron civil work includes taxilane relocation, connection to existing taxiways and connecting underground utilities to the new utility corridor for permanent services ○ ○ Phase A Design Services/Geotechnical investigations nearing completion Phase B Design Services being negotiated Anticipated Timeline ○ Design: 2024 – 2026 ○ Build: 2026 – 2030 Designer: Page/Fentress Construction: Hensel Phelps 12 Conceptual rendering – Exact gate count to be determined with airlines 34Arrivals and Departures Hall Latest Updates - Currently In Scope: ○ New check-in/ticketing hall and domestic baggage claim ○ Removal of Red Garage ○ Work includes roadway/curbside relocation, passenger bridge connections to parking, connections to BJT and major infrastructure improvements as needed ○ Phase A Design Services ongoing Anticipated Timeline ○ Design: 2025 – 2026 ○ Build: 2026 – 2030 Designer: SOM Construction: Austin Commercial 13 Pre-design conceptual rendering. Final design specifications and features subject to change as the project progresses. 35Appendix 36Journey with AUS Prime Designers and Contractors Project Contract Type Company West Infill & TSA Checkpoint 3 Expansion Design-Build Gensler/Whiting-Turner West Gate Expansion Atrium Infill Midfield Taxiways Yellow Parking Garage Design CMAR Design CMAR Design CMAR Design CMAR Page Hensel Phelps Corgan Whiting Turner RS&H Austin Bridge & Road PGAL Austin Commercial Central Utility Plant Design-Build JE Dunn/Jacobs Utility Infrastructure Campus-Wide Concourse B & Tunnel Arrival & Departure Hall Design CMAR Design CMAR Design CMAR HDR Sundt/Archer Western Page/Fentress Hensel-Phelps SOM Austin Commercial 37Project Details Disadvantage Business Enterprise Goals and Delivery Methods Outbound Baggage Handling System & West Infill ● Disadvantaged Business Enterprise Goals Midfield Taxiways ● Disadvantaged Business Enterprise Goals ○ Construction & Design: 5.52% □ 10% anticipated ● Delivery Methods ○ Design-Build □ Whiting-Turner □ Gensler, VTC BHS West Gate Expansion ● Disadvantaged Business Enterprise Goals ○ ○ Design: 17% Construction: 11.12% ● Delivery Methods ○ ○ Design: Page Architects (Rotation List) Construction: Hensel Phelps 16 ○ Design: 17% ○ Pre-Construction: 9.14% ○ Construction: 7.45% ● Delivery Methods ○ Design: RS&H ○ Construction: Construction Manager At Risk: Austin Bridge & Road West Garage Lot B ● Disadvantaged Business Enterprise Goals ○ Design: 10.71% ○ Pre-Construction: 14.27% ● Delivery Methods ○ Design: PGAL, Inc. ○ Construction: Construction Manager At Risk: Austin Commercial, LP 38Project Details Disadvantage Business Enterprise Goals and Delivery Methods Atrium Infill ● Disadvantaged Business Enterprise Goals ○ Design: ○ Construction: 10.4% ● Delivery Methods ○ Design: Corgan ○ Construction: Whiting Turner Utility Infrastructure Campus-Wide ● Disadvantaged Business Enterprise Goals ○ Design: 5.75% ○ Construction: 6.32% ● Delivery Methods ○ Design: HDR Engineering, Inc. ○ Construction: Sundt/Archer Western Central Utility Plant ● Disadvantaged Business Enterprise Goals ○ Design: 18.9% 17 ● Delivery Methods ○ Progressive Design-Build: JE Dunn/Jacobs Concourse B and Tunnel ● Disadvantaged Business Enterprise Goals ○ Design: 8.85% ○ Pre-Construction and Construction: 9.40% ● Delivery Methods: ○ Design: Page / Fentress Joint Venture ○ Construction: Hensel Phelps Arrivals and Departures Hall ● Disadvantaged Business Enterprise Goals ○ Design: 10.25% ○ Pre-Construction and Construction: 8.74% ● Delivery Methods ○ Design: Skidmore, Owings & Merrill LLP ○ Construction: Austin Commercial, LP 39Project Descriptions Outbound Baggage Handling System & West Infill – 5415.112 ● Design build a new centralized baggage handling system (BHS) to increase screening capacity, address existing operational concerns, and upgrade to 30 Million Annual Passengers processed. Includes the West Infill and TSA Checkpoint 3 expansion projects, which will add over 75,000 square feet to the Barbara Jordan Terminal over 4 levels and allow for the expansion of Checkpoint 3 from 2 to up to 8 lanes. Midfield Taxiways- 13188.003 ● Design and construct two concrete parallel midfield taxiways with taxiway connectors and access to the existing maintenance ramp. The project includes constructing two taxiway bridges, utility relocation, drainage improvements, demolition of existing pavements and infrastructure, new airfield lighting and signage, new security fencing, a new reclaimed water bulk refiling station and modifications to roadways and parking lots. West Gate Expansion – 13184.014 ● The main expansion project will add 3 new Gates (short term) to the west end of the Barbara Jordan Terminal (BJT) and replace 12 aging boarding gates. This project will provide infrastructure needed for passenger growth, comfort, health and safety. West Garage – Lot B – 13308.002 ● Planning, design and construction of a multi-level parking garage with an estimated capacity of 7,700 spaces. The designated location for this garage is the current Lot B surface parking area (approx. 326,000 sf), situated directly north of the existing Blue Garage. This project creates additional parking to replace parking and revenue lost due to construction and to meet future demand connected with enplanement growth forecasts associated with the addition of Concourse B. 18 40Project Descriptions Atrium Infill – 13309.002 ● Project will add more square feet to the terminal for security screening, bag check and passenger processing by filling in existing open space above baggage claim. The project will add approximately 12,000 square feet of concourse level floor plate to the Barbara Jordan Terminal. The elevated slab will be constructed while the existing vertical circulation is kept in place. The project will also upgrade the mechanical, electrical and plumbing systems as needed. The suspended slab will likely require enhancements to the existing structural capacity. Utility Infrastructure Campus-Wide – 13307.001 ● Design and construct utility systems including reclaimed water, storm drainage, water quality pond/deicing pond, detention pond, hydronic piping (chilled and hot water), AUS medium voltage electrical power distribution center, ductbank, and electrical distribution system, redundant electrical duct banks (as an option), information technology/telecommunications duct banks, and other utility extensions that may be identified as the Journey With AUS program progress and their seamless coordination with other Journey With AUS facilities projects. 19 Central Utility Plant – 13307.002 ● Design, construct and commission a new, appropriately sized CUP and associated Thermal Energy Storage (TES) utilizing current efficiency technology, equipment, and operational processes to provide reliable, redundant and resilient service for the existing and future AUS cooling and heating loads. Concourse B and Tunnel – 13185.001 ● New Concourse B with at least 20 gates and a tunnel to the Barbara Jordan Terminal and all required apron space. Work includes addition of an interface connector at the Barbara Jordan Terminal to provide required seamless path for passengers to enter the tunnel and space for the baggage handling system and utilities. Arrivals and Departures Hall – 13182.001 ● New Arrivals and Departures Hall for all ticketing and domestic baggage claim. Work includes the removal of the Red Garage, relocation/expansion of curbside roadway and installation of all utility infrastructure as needed. Removal of existing ticketing in the existing Barbara Jordan Terminal is also included. 41Thank You! 42AIRPORT ADVISORY COMMISSION ITEM 5 – STAFF BRIEFINGS Briefing on Austin Aviation’s Fiscal Year 2025- 2026 Budget presented by Rajeev Thomas, Chief Financial Officer 43 City of Austin 2025-26 BUDGET Austin Aviation Proposed Budget August 13, 2025 44Major Assumptions • New airline use and lease agreement effective FY26 with new rate methodology • 3% annual passenger enplanement growth in FY26 • Flat enplanement growth expected in FY25, which drives moderated non-airline revenues in the current year estimate • Across the board wage adjustment of 4% in FY26 • New FTEs to support facility and passenger traffic growth: FY26 – 24 FTEs Increase in contribution to retirement from 8.7% to 9.6% and increased legacy liability contribution Increased preventative maintenance costs for infrastructure Increased wage cost for airport APD unit and 3 additional officers for checkpoint coverage Initiation of contributions to a Major Maintenance Fund recovered through airline rates and charges to be used toward capital projects. FY26 contribution is $30 million • • • • 1 45AUS Activity • Average daily departures continue to optimize as carriers adjust strategies • YTD FY25 average daily departures through June total 243 • FY24 enplanement growth of 0.4% due to adjustments to carrier strategies • Enplanement growth of 3% annually from FY26-30 2 46Revenue Assumptions • Annual passenger enplanement growth of 3% drives non-airline revenue growth • Annual growth in aircraft landed weights of 2% and airfield requirements increases landing fee revenue • New Airline Use and Lease Agreement expected in FY26, will modify airline terminal rate methodology • Parking revenues increase in FY26 from increase in passenger traffic and rate adjustments. • TNC revenues increase as trip activity growth continues to exceed passenger growth • Terminal concessions growth trend aligns with passenger growth 3 47Operating Revenues Budget 2024-2025 CYE 2024-2025 Proposed 2025-2026 $ Change % Change vs FY25 Budget vs FY25 Budget Planned 2026-2027 Operating Revenue Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue yoy change % Non-Airline Revenue Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees Total Non-Airline Revenue yoy change % 59,625,915 111,271,727 170,897,642 12.2% 59,625,915 111,271,727 170,897,642 12.2% 79,896,787 168,236,307 248,133,094 45.2% 20,270,872 56,964,580 77,235,452 81,247,697 11,615,065 21,948,757 20,109,576 7,508,056 5,148,000 27,509,304 175,086,455 5.7% 77,751,861 11,043,783 21,477,962 20,213,799 7,094,410 5,983,168 25,448,019 169,013,002 2.0% 80,200,462 11,374,092 21,695,821 21,002,326 7,216,411 6,384,403 26,218,633 174,092,148 -0.6% (1,047,235) (240,973) (252,936) 892,750 (291,645) 1,236,403 (1,290,671) (994,307) Interest Income Total Operating Revenue yoy change % 5,000,000 4,600,000 3,000,000 (2,000,000) 350,984,097 8.7% 344,510,644 6.7% 425,225,242 21.2% 74,241,145 34.0% 94,153,582 51.2% 180,703,424 45.2% 274,857,006 10.8% 86,140,200 -1.3% 13,849,027 -2.1% 22,128,830 -1.2% 21,636,680 4.4% 7,659,831 -3.9% 6,833,349 24.0% 30,173,004 -4.7% -0.6% 188,420,921 8.2% -40.0% 21.2% 2,000,000 465,277,927 9.4% New airline use and lease agreement expected to be in place in FY26 will modify rate methodology to ensure cost recovery for airport expansion and operations. Increased expenses and debt service will drive increased airline revenues. 4 48 Operating Expense Assumptions • Across the board wage adjustment of 4% in FY26 • 24 new FTEs are included in the FY26 budget to support new facilities opening in FY26 and beyond. • Employer’s contribution to retirement increasing from 8.7% to 9.6% and legacy liability payment increasing $604k • Increase in building maintenance contractual costs primarily for preventative maintenance • APD cost increasing due to wage increases in labor agreement and due to addition of 3 officer FTEs • Initiation of third-party operations of virtual ramp control center in FY26 • Cost savings identified in information systems, South Terminal closure, and support services to partially offset increases to contractual costs 5 49Operating Expenses Airport Operating Expenses Personnel Contractuals Commodities Non-CIP Capital Expense Refunds Total Operating Expenses yoy change % Budget 2024-2025 CYE 2024-2025 Proposed 2025-2026 $ Change % Change vs FY25 Budget vs FY25 Budget Planned 2026-2027 87,886,989 88,162,829 7,376,741 224,000 - 87,559,677 86,758,200 7,632,700 200,000 96,243,347 89,853,873 7,232,861 125,000 - 183,650,559 12.4% 182,150,577 11.5% 193,455,081 5.3% 8,356,358 1,691,044 (143,880) (99,000) - 9,804,522 9.5% 1.9% -2.0% -44.2% N/A 5.3% 103,916,041 102,347,663 8,612,440 150,000 - 215,026,144 11.2% • FY26 Proposed Budget increases by 6.2% compared to FY25 CYE primarily because of personnel cost drivers • FY26 Proposed Budget increases by 5.3% compared to FY25 Budget • FY25 Current Year Estimate is $1.5 million below FY25 Budget due to adjustment to shift note purchase program costs to subordinate obligation fund 6 50 FY26 Significant Expense Changes Personnel • 4% across the board wage increase • 24 new FTEs to support operations and expanded facilities in FY26 • Additional temporary staffing to assist with passenger needs and security during construction projects Contractuals • Building Maintenance costs increasing for preventative maintenance • APD cost increase for wage adjustments and 3 new officer FTEs in FY26 • Third-party ramp control operations scheduled to commence in FY26 Commodities • Facility services and information systems commodity purchases decrease because of more efficient usage Non-CIP Capital • Replacement of terminal waste bins completed in FY25 which decreases non-CIP capital budget in FY26 7 FY25 Budget Personnel Wage Adjustment New FTEs Temporary Employees Change in Vacancy Savings Retirement, benefits, etc. Total Personnel Contractuals Building Maintenance APD Ramp Control South Terminal Misc contractual costs Total Contractuals Commodities Non-CIP Capital Total Change FY26 Proposed Budget (in millions) $ 183.65 $ $ $ $ $ $ 2.34 1.50 1.37 0.89 2.26 8.36 $ $ $ $ $ $ 1.87 1.73 1.22 (1.83) (1.29) 1.70 $ (0.15) $ (0.10) $ 9.81 $ 193.46 51AUS Forecast Summary Budget 2024-2025 CYE 2024-2025 Proposed 2025-2026 $ Change vs FY25 Budget % Change vs FY25 Budget Planned 2026-2027 Revenue Airline Revenue Non-Airline Revenue Interest Income Total Operating Revenue Operating Expenses Aviation Operating Expenses City of Austin Transfers Operating Reserve Short Term Debt Interest Debt Service (Net of PFC) Total Requirements 170,897,642 175,086,455 5,000,000 350,984,097 183,650,559 15,084,469 3,060,677 - 81,053,612 282,849,317 170,897,642 169,013,002 4,600,000 344,510,644 182,150,577 15,084,469 3,060,677 1,500,000 81,053,612 282,849,335 248,133,094 174,092,148 3,000,000 425,225,242 193,455,081 16,078,819 1,813,205 2,000,000 79,127,053 292,474,158 Net Income 68,134,780 61,661,309 132,751,084 Transfer to Major Maintenance Fund Net Transfer to Capital Fund - - 68,134,780 61,661,309 30,000,000 102,751,084 77,235,452 (994,307) (2,000,000) 74,241,145 9,804,522 994,350 (1,247,472) 500,000 (1,926,559) 8,124,841 66,116,304 30,000,000 36,116,304 45.2% -0.6% -40.0% 21.2% 5.3% 6.6% -40.8% N/A -2.4% 2.9% 97.0% N/A 53.0% 274,857,006 188,420,921 2,000,000 465,277,927 215,026,144 17,101,768 3,875,653 - 99,212,344 335,215,909 130,062,018 31,050,000 99,012,018 Net income increases 97% in FY26 primarily due to increased operating revenues generated by the anticipated new rate methodology in the new airline use and lease agreement 8 52 Facilities projected to be completed by FY26 Baggage Capacity Improvements West Gate Expansion West Infill and TSA Checkpoint Expansion International Arrivals (FIS) Improvements Atrium Infill 9 53FY26 – CIP Spending Plan FY26 Capital Spend Breakdown AEDP Renewal and Replacements (R&R) IT Vehicles and Equipment AIPP Total Amount $713,998,876 $78,055,541 $15,841,924 $6,010,500 $1,784,854 $815,691,695 AEDP IT R&R • Midfield Taxiways • BHS • West Gate Expansion • Atrium Infill • West Garage • Central Utility Plant design 10 • Virtual Ramp Control • Self-Service • Terminal HVAC Air Handling Equip Passenger Processing • Elevator • Campus Digital Signage Display Replacements Refurbishment • Passenger Boarding Bridge Replacements Vehicles • COBUS • Replacement Vehicles 54THANK YOU 11 55AIRPORT ADVISORY COMMISSION ITEM 6 – DISCUSSION/ACTION ITEM Authorize negotiation and execution of Signatory Airline Use and Lease Agreements and Signatory Cargo Agreements with the commercial passenger airlines and commercial cargo carriers or companies for use of the Austin-Bergstrom International Airport, for an initial term starting January 1, 2026, and ending September 30, 2035, with a two-year extension option; and authorize negotiation and execution of Non-Signatory Airline Agreements and Non-Signatory Cargo Agreements for a month-to-month term with those carriers or companies that choose not to become signatories under the new signatory agreements. Funding: There is no revenue impact for Fiscal Year 2024-2025 for the Aviation Department’s Operating Budget due to the proposed January 1, 2026, effective date for the Agreements. 56 City of Austin Recommendation for Action File #: 25-1700, Agenda Item #: 8/28/2025 Posting Language Authorize negotiation and execution of Signatory Airline Use and Lease Agreements and Signatory Cargo Agreements with the commercial passenger airlines and commercial cargo carriers or companies for use of the Austin-Bergstrom International Airport, for an initial term starting January 1, 2026, and ending September 30, 2035, with a two-year extension option; and authorize negotiation and execution of Non-Signatory Airline Agreements and Non-Signatory Cargo Agreements for a month-to-month term with those carriers or companies that choose not to become signatories under the new signatory agreements. Funding: There is no revenue impact for Fiscal Year 2024-2025 for the Aviation Department’s Operating Budget due to the proposed January 1, 2026, effective date for the Agreements. Lead Department Aviation Fiscal Note There is no revenue impact for Fiscal Year 2024-2025 for the Aviation Department’s Operating Budget. This item will generate sufficient revenues to meet operations and maintenance needs and debt service requirements during the proposed term of the Agreements from Fiscal Years 2026 to 2035. Alongside non- airline revenues, airline revenues generated from the Agreements will be utilized to fulfill debt service coverage requirements, fund operations and maintenance expenses, and provide funds for the airport’s capital improvement program and the Airport Expansion and Development Program over the proposed term of the Agreements. For More Information: Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at tracy.thompson@flyaustin.com, <mailto:tracy.thompson@flyaustin.com> 512-530-5023 or Ghizlane Badawi, Chief Executive Officer at ghizlane.badawi@flyaustin.com <mailto:Ghizlane.badawi@flyaustin.com>, 512-530- 8846. Council Committee, Boards and Commission Action: To be reviewed by the Airport Advisory Commission on August 13, 2025. Additional Backup Information: The Department of Aviation seeks to enter into the various agreements which will serve as the primary operating and lease agreements for the passenger and cargo carriers and companies serving the Austin- Bergstrom International Airport (AUS) that choose to operate at the AUS during the term of the agreements, (collectively the Agreements). Rates, fees and charges for all airlines and cargo carriers and companies operating from AUS are adjusted every fiscal year and such rates fees and charges are reflected in the Department of Aviation’s published schedule of Rates, Fees, and Charges. Signatory Agreements: These agreements establish the commitment to support the construction of the Airport Expansion and Development Program (AEDP) and include commitments to lease and use future City of Austin Page 1 of 3 Printed on 8/5/2025 powered by Legistar™ 57File #: 25-1700, Agenda Item #: 8/28/2025 premises to be constructed as part of the AEDP. The proposed primary terms of the agreements include: • • • • • • TTerm: Initial term starting January 1, 2026, and ending September 30, 2035. The Agreement for passenger signatory airlines includes an extension option that could extend the term until September 30, 2037. If the option is exercised, the extension option will also be made available to the cargo carriers and companies. EEffective Date: January 1, 2026, or if not executed by that date, the date on which the agreement is signed by both parties. EExpiration: September 30, 2035, subject September 30, 2037. to a two-year extension option for a term ending on PPremises: The agreements will include the lease and assignment of premises and space at AUS for Passenger Signatory Airlines: including but not limited to premises and space for exclusive, preferential, and common use. RRates and Charges Commitment Included in the Signatory Airline Use and Lease Agreement rates, fees and, charges that are assessed to passenger airlines for use of the airfield areas (runways and taxiways), the terminal areas (ticketing, gates, baggage areas, operational space and offices), and the apron areas (passenger boarding bridges, aircraft parking positions, equipment storage) is the commitment of each signatory airline for payment of a minimum annual guarantee (MAG) of revenues to be paid each fiscal year by such signatory airline. The MAG is established as a percentage of fees, and charges payable by passenger carriers pursuant to the agreement. The actual rates, fees and charges paid by an airline each fiscal year will offset the obligation of the MAG for such airline. the total all rents, RRates and Charges Commitment for Signatory Cargo Carriers and Companies: Included in the signatory cargo agreement landing fee rate that is assessed to cargo carrier companies for use of the airfield areas (runways and taxiways), is the commitment of each signatory cargo carrier or company for payment of a MAG of revenues to be paid each fiscal year by such signatory cargo carrier or company. The MAG is established as a percentage of the total cost associated with the airfield area. The landing fees paid by a cargo carrier or company each fiscal year will offset the obligation of the MAG for such cargo carrier or company. Non-Signatory Agreements: • • TTerm: Month-to-month. NNon-Signatory Airline and Cargo Carrier and Company Rate Premium: Passenger airlines operating at AUS under a Non-Signatory Airline Use and Lease Agreement will be subject to rates, fees, and charges that are 15% higher than those payable by signatory airlines. Non-signatory airlines will not have a MAG. Cargo carriers and companies operating at AUS under a Non-Signatory Cargo Carrier Agreement will be subject to landing fees that are 15% higher than those payable by signatory cargo carriers and companies. Non-signatory cargo carriers and companies will not have a MAG. The Agreements are the mechanisms by which the City can accomplish the funding and operation goals for the expansion of AUS and the provision of an enhanced passenger experience not only for the citizens of Austin, but also for the Central Texas service area. Immediately following the COVID-19 pandemic, AUS experienced a record-breaking recovery earning the title of in the country. In 2023, AUS had its busiest year on record with over 22 million passengers. It is now classified as a large hub airport by the Federal Aviation Administration (FAA) due to the dramatic increase in passenger volume which is expected to remain steady. This extraordinary growth spurred the prioritization of delivering near-term and long-term airport improvements through the AEDP. The AEDP will meet the current and future needs of our growing region while elevating the passenger journey with an authentic Austin and Central Texas experience. the fastest growing mid-size airport City of Austin Page 2 of 3 Printed on 8/5/2025 powered by Legistar™ 58File #: 25-1700, Agenda Item #: 8/28/2025 The AEDP will not only enhance the infrastructure of Central Texas’s largest airport but also play a significant role in driving the growth of local businesses. No local Austin tax dollars will be used in these improvements as AUS is self-sustaining by generating its own revenue and by using FAA grants, future revenue bond proceeds and airport cash reserves to fund the AEDP. By the early 2030s, the AEDP will deliver a new 20+ Gate Concourse B, a new Arrivals and Departures Hall, improved and realigned airport roadways and terminal curbsides, new airfield infrastructure and the required utilities to support, making this the largest expansion and modernization effort in the history of AUS. City of Austin Page 3 of 3 Printed on 8/5/2025 powered by Legistar™ 59AIRPORT ADVISORY COMMISSION ITEM 7 – DISCUSSION/ACTION ITEM Authorize a contract for modernization of an elevator at Austin-Bergstrom International Airport for the Department of Aviation with Schindler Elevator Corp. for a term of fifteen months in an amount not to exceed $724,758. Funding: $724,758 is available in the Capital Budget of the Department of Aviation. [Note: Sole source contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established.] 60 City of Austin Recommendation for Action File #: 25-1529, Agenda Item #: 41. 8/28/2025 Posting Language Authorize a contract for modernization of an elevator at Austin-Bergstrom International Airport for the Department of Aviation with Schindler Elevator Corp. for a term of fifteen months in an amount not to exceed $724,758. Funding: $724,758 is available in the Capital Budget of the Department of Aviation. Lead Department Financial Services Department. Client Department(s) Department of Aviation. Fiscal Note Funding is available in the Capital Budget of the Department of Aviation. Purchasing Language: Sole Source. MBE/WBE: Sole source contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department - Central Procurement at FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: August 13, 2025 - To be reviewed by the Airport Advisory Commission. Additional Backup Information: The contract will provide full modernization to escalator #6 located in the Federal Inspections Services Corridor (FIS) at Austin-Bergstrom International Airport where international passengers proceed to U.S. Customs and Border Protections. Original to the airport, the escalator is 25+ years old and has exceeded its serviceable life span. Given the high volume of passengers moving through the FIS corridor, a full-scale replacement is impractical, as it would necessitate major construction efforts, including structural modifications to the building and the use of a crane. This modernization will further the airport’s goals of providing accessibility to the flying public while bringing the escalators safety features and functions up to current industry standards. The contractor is the sole source of this upgrade as their proprietary system allows for a complete replacement of parts without the involvement of multiple trades and major construction within the restricted FIS corridor. The proprietary modernization system offers the best value as the corridor will remain open during the refurbishment, allowing the airport to continue to accommodate international flight passengers. City of Austin Page 1 of 2 Printed on 8/5/2025 powered by Legistar™ 61File #: 25-1529, Agenda Item #: 41. 8/28/2025 This is a one-time purchase that includes all labor and materials to modernize the existing equipment. The contractor is licensed and qualified to work on a variety of lift equipment including the equipment referenced. The current escalator operates less than 50% of the time and requires ongoing maintenance and repair to maintain this limited functionality. If a contract is not secured, the airport will not be able to provide adequate safe accessibility to passengers, including those with mobility challenges, passing through the FIS Corridor. City of Austin Page 2 of 2 Printed on 8/5/2025 powered by Legistar™ 62