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Treasury update: airport reports about 542 days cash on hand; July passenger activity exceeds budget
Summary
Treasury staff reported roughly 542 days cash on hand, investment income above budget and potential excess income to support airline incentives; July passenger results ran above budget while cargo weights trended below budget earlier in the year but improved in July.
Keith Rexing (treasury manager) told the committee there had been no material change in liquidity since the June presentation and that the authority held roughly 542 days of cash on hand, a figure staff said excludes recent bond proceeds tied to hotel or other debt issuances. Keith said the authority’s policy target range for days cash on hand has been discussed and staff are considering framing it as a target rather than a minimum; the policy target range discussed earlier is 400 to 500 days.
Keith presented an investment dashboard and said staff anticipate excess investment income of about $3.5 million, mostly related to larger‑than‑expected construction account balances and changed draw schedules on bond proceeds. He said approximately $500,000 of that excess could be applied to the airline incentive program.
Lisa Hawkins (finance) reviewed July operating and non‑operating revenue trends. Through July, passenger counts were about 2.3% above budget and landed weights were above budget; cargo landed weights trended below budget year‑to‑date but were near budget in July. Parking and retail revenues were higher than budget and the Indianapolis Maintenance Center (IMC) drove incremental revenue tied to a new lease effective March 1. Total expenses were running under budget by about $4 million year to date. Staff reported an estimated 2025 outperformance of $44 million as of July and noted plans to apply some of that outperformance toward one‑time capital or performance projects.
Committee members asked about the appropriate treatment of non‑operating items in debt service coverage ratios and about bank tier‑1 capital ratios; staff confirmed compliance with investment policy and reported banks’ tier‑1 ratios remained comfortably above notification thresholds.
No committee action was required; staff asked the committee to note the liquidity and financial results and to expect further updates.
