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Airport leaders present FY26 budget as capital program nears completion; debt and replacement costs rise
Summary
Salt Lake City Department of Airports briefed the council on its FY26 budget, highlighting increased debt service from the airport redevelopment program, a larger operating footprint and new replacement needs for recently installed systems; staff said gates and concourses will complete in stages through October 2026.
Salt Lake City’s airport leadership presented the proposed fiscal year 2026 budget April 15, telling the council the airport is entering a phase of higher operating responsibility and replacement‑cycle costs as the long‑running airport redevelopment program winds toward completion.
Airport leaders said debt service has risen because construction has brought new facilities and aircraft gates online. Airport Director Bill (presentation) said that, between opening and finish, the airport will increase from roughly 52 to 94 jet bridges and will take on operation and maintenance of much more apron, concourse and systems infrastructure.
Finance staff portrayed a multi‑year view: passenger forecasts provided by airlines drive airline revenue lines (landing fees and terminal rents), while parking, rental‑car concessions and food‑and‑beverage continue to be important non‑airline revenue sources. The budget assumes no new parking rate increases but projects higher concession revenue partly because a planned third‑party lounge (American Express) is expected to open in October.
Airport staff also outlined federal grant sources that help fund capital projects including the Airport Improvement Program (AIP), Bipartisan Infrastructure Law allocations and the Airport Terminal Program. Staff cautioned that some one‑time federal programs are limited in time and that certain zero‑emission vehicle grants remain uncertain; the airport will pursue available grant awards but plans cash funding where grant execution is not certain.
On capital, staff said FY26 includes a mix of replacement and new equipment purchases (electric shuttle buses, runway lighting equipment and snow removal hardware) and a CIP focused on runway extensions, apron and taxiway work and enabling projects for future concourses. The airport expects to return to the bond market this summer for financing needs tied to late‑stage work on the redevelopment program. Staff reaffirmed a target to end the phased program by October 2026 with final gates and concourse work completed.
Ending: Council members praised the airport’s revenue performance and staff’s planning. Airport staff will return with more detailed bond and grant briefings and to finalize spend plans as the fiscal process continues.
