THE Commonwealth Ports Authority board of directors on Tuesday approved a plan to spend $13.2 million in fiscal year 2022. Most of the funding is derived from federal grants, including the Covid-19 pandemic assistance.
CPA’s FY 2022 budget spreadsheet prepared by comptroller Skye Lynn A. Hofschneider indicates $4.1 million in projected total revenue. Of this amount, $1.9 million is aviation revenue, and $2.1 million is non-aviation revenue.
CPA’s total revenue in the fiscal year prior to Covid-19 pandemic was $13.4 million.
Thanks to the Coronavirus Aid, Relief, and Economic Security or CARES Act, and the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, CPA is able to allocate a total of $11 million in federal assistance from Federal Aviation Administration in FY 2022.
In addition, the CPA board appropriated $180,000 in reimbursable grants from the Transportation Security Administration.
The CPA board likewise appropriated $100,000 in passenger facility charges, which CPA projected to collect in FY 2022.
Because of the significant amount of funds it received from the federal government, CPA is expected to cover $13.2 million in projected expenses, fund its $1.3 million debt service, and end up with a $471,190.38 surplus in FY 2022.
In separate budget narratives, Hofschneider said CPA’s airport and seaport revenues have decreased in the last three years due to typhoons and Covid-19 pandemic.
She said total revenues decreased by 48% from FY 2019 to FY 2020 due to the effects of the Covid-19 pandemic on airport operations, and revenues are forecast to decrease by 82% from FY 2020 to FY 2021 for the same reason.
Hofschneider said the airport’s projected revenues for FY 2022 are budgeted conservatively with a 221% projected total revenue increase compared to the estimated revenues of the past fiscal year.
She said the projected increase in revenues is due to the implementation of terminal rental rates and operating permit. Additionally, she said the proposed budget does not include an extension of the Covid-19 tenant relief program.
For harbor and non-harbor activities, she said the consolidated revenue trends “have been volatile for the past three fiscal years.” This is mainly due to the reduction in inbound revenue tonnage and the effects of typhoons and the Covid-19 pandemic, she added.
