Committee clears $13.7 million annual transfer from airport debt-service fund to revenue fund

The St. Louis City Transportation & Commerce Committee on Dec. 16 passed out of committee, with a due-pass recommendation, a routine annual transfer of $13,700,000 from the airport debt service stabilization fund to the airport revenue fund.

Antonio Strong, deputy director of finance administration for the airport, told the committee the transfer is required under the airport’s bond indenture and the airport use and lease agreement with airlines. "We are required to perform this annual $13,700,000 transfer from the airport debt service stabilization fund to the airport revenue fund," Strong said, adding that the transfer began around fiscal year 2012 to help maintain a debt service coverage ratio of about 1.25 and to mitigate potential airline rate increases.

Strong said the stabilization fund was established around fiscal year 2006 and the current balance is $22,400,000. He told the committee airport revenues have continued to increase, employment is showing growth and passenger activity is approaching 2019 levels; he said new concessions have opened in Terminal 2 and on Concourse C. Strong and committee members noted that the fund can be used for emergency debt service needs and to smooth airline rate impacts.

Alderwoman Schweitzer and others thanked staff and noted upcoming international service (British Airways) as a positive sign for airport demand. A motion to pass board bill 118 with a due-pass recommendation was made and, after invoking the previous rule with no objection, the committee passed the bill out of committee.

The transfer had earlier been approved by the airport commission and the city comptroller, as noted by staff. The bill will proceed to the full Board for consideration.