Economic Conditions

In addition to growth, Denton Enterprise Airport has faced general economic conditions that create challenges in funding operations and infrastructure. The general economy has seen a trend of rising inflation and cost of goods particularly in the construction industry. Increase borrowing rates and increase cost of labor and services also adversely impact the Airport's ability to fund improvements, utilize technology, or source airport services.

The attached image provides an example of the 5-year history of inflation rates and several important categories of construction supplies. While interest rates and supply costs have stabilized in the last 1-2 years, the impact of increases experienced in 2020-2022 continue to elevate costs.

Regulatory Conditions

As an enterprise operation, the airport has the obligation to cover its expenses through airport revenues. In other words, the cost of running the Airport is to be borne by Airport users, and not the general taxpayer who does not otherwise use the airport. This approach to airport funding yes supported and promoted by FAA Grant Assurance 24. FAA grant assurances are those obligations that an airport must agree to in order to receive FAA funding for large infrastructure projects. Currently that funding covers 90% of a project's cost. FAA Grant Assurance 24 addresses fees and rental structures and states that the airport sponsor will strive to be as "self-sustaining as possible".

In short, as the general economic conditions have continued to drive prices higher, the airport's obligation to fully fund its operations with airport revenues remains unchanged.