ANNUAL FINANCIAL REPORT - Denver International …

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2019 AND 2018

PREPARED BY THE FINANCE DIVISION DEPARTMENT OF AVIATION

AN ENTERPRISE FUND OF THE CITY & COUNTY OF DENVER COLORADO

TABLE OF CONTENTS Introductory Section (Unaudited) Letter of Transmittal Background City Officials Organizational Chart Financial Section Independent Auditor's Report Management's Discussion and Analysis (Unaudited) Financial Statements

Statements of Net Position Statements of Revenues, Expenses, and Changes in Net Position Statements of Cash Flows Notes to Financial Statements Required Supplementary Information (Unaudited) Schedule of Airport Proportionate Share ? Net Pension Liability Schedule of Airport Contributions ? Net Pension Liability Other Postemployment Benefit Plans Schedule of Airport Proportionate Share ? Net OPEB Liability Schedule of Airport Contributions ? Net OPEB Liability Schedule of Airport Proportionate Share ? Implicit Rate Subsidy Other Information Section (Unaudited) Schedule of Compliance with Rate Maintenance Covenant as Defined in the 1984 Airport System General Bond Ordinance Airport Revenue Account Schedule of Required Deposits to the Bond Account, Bond Reserve Account, and the Operation and Maintenance Reserve Account as Defined in the 1984 Airport System General Bond Ordinance

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

ANNUAL FINANCIAL REPORT December 31, 2019 and 2018

2 2 8 9

10 13

32 34 35 37

89 90

91 92 93

95

96

Statistical Section (Unaudited) Financial Trends

Summary of Net Position Summary of Changes in Net Position Summary of Operating Expenses Summary of Nonoperating Income and Expenses Revenue Trends Summary of Operating Revenues Market Share of Air Carriers/Enplaned Passengers by Airline Summary of Passenger Facility Charge Revenue Debt Capacity Outstanding Debt Principal by Type Debt Service Coverage under the Bond Ordinance Operating Information City and County of Denver Demographics and Economic Statistics City and County of Denver Principal Employers Passenger and Operating Statistics Emplaned Passengers by Major Airline Category Aircraft Operations Landed Weight Enplaned Cargo Operations Career Service Employees Nature, Volume and Usage of Capital Assets Summary of Insurance Coverage

ANNUAL FINANCIAL REPORT December 31, 2019 and 2018

102 103 104 105

106 107 108

109 110

111 112 113 114 115 116 117 118 119 122

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

ANNUAL FINANCIAL REPORT December 31, 2019 and 2018

2019 ANNUAL FINANCIAL REPORT INTRODUCTORY SECTION (UNAUDITED)

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

Page 1 of 122

ANNUAL FINANCIAL REPORT December 31, 2019 and 2018

Letter of Transmittal

June 30, 2020

To the Public and Fellow Employees

We are pleased to present the Annual Financial Report of the Municipal Airport System for the fiscal years ended December 31, 2019 and 2018. This report was prepared by the Airport's Finance Division in collaboration with other Airport personnel.

The letter of transmittal is designed to complement and should be read in conjunction with Management's Discussion and Analysis (MD&A). The MD&A, which immediately follows the Independent Auditor's Report, provides an introduction, overview and analysis of the Airport financial statements.

Responsibility for the accuracy, completeness, and fairness of the presentation and disclosures included in this report rests with management. To the best of our knowledge, this report is accurate in all material respects and designed to fairly present the financial position and results of Airport operations.

Background

The Municipal Airport System is organized as a department of the City and County of Denver, Colorado (the City) and includes Denver International Airport (the Airport or DEN) and former Stapleton International Airport (Stapleton). The Airport is headed by a Chief Executive Officer who reports directly to the Mayor. In addition, the senior management team further consists of five executive vice presidents of which four positions are currently occupied. This report was prepared by the Airport's Finance Division in collaboration with other Airport personnel to provide a better understanding of the Airport.

The Airport is an enterprise fund of the City. Enterprise funds are defined as government-owned businesses authorized to issue their own revenue bonds and receive fewer than 10% of their annual revenues in grants from all State and Local governments combined. An enterprise fund is established to account for operations that are financed and operated in a manner similar to business-type activities, where fees are charged to external parties to cover the costs of providing goods and services. An enterprise fund uses the accrual basis of accounting, and accordingly, revenues are recognized when earned and expenses are recognized as incurred.

Description of DEN

Situated approximately 24 miles northeast of downtown Denver, DEN is the primary air carrier airport serving the region. According to Airports Council International, in 2019, DEN was the fifth busiest airport in the United States and the sixteenth busiest in the world, serving 69.0 million passengers. DEN comprises approximately 33,800 acres (53 square miles) of land, an area twice the size of the island of Manhattan and is the second largest physical airport in the world. The passenger terminal complex is reached via Pe?a Boulevard, a 12-mile dedicated access road which connects Interstate 70 and intersects with E-470 toll highway. DEN has six runways--four oriented north-south and two oriented east-west. Five runways are 12,000 feet long and 150 feet wide. The sixth runway is 16,000 feet long and 200 feet wide, providing unrestricted global access for any airline and the ability to accommodate fully loaded jumbo jets, including the Airbus A-380.

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

Page 2 of 122

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download