#1 - Cost

Cost of Denver International Airport - 1995

(Dollars in millions)

Category                                                          Cost
------------------------------------------------------------  --------
Cost to Denver Airport System
 Construction                                                   $3,004
 Airport planning and land                                         261
 Capitalized interest                                              915
 Bond discounts                                                     43
 
 Total cost to Denver Airport System                             4,223
Cost to others
 FAA's facilities and equipment                                    199
 United Airlines' special facilities                               261
 Continental Airlines' special facilities                           73
 Rental car facilities                                              66
 
 Total cost to others                                              599
======================================================================
Total costs of Denver International Airport                     $4,822
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Source:  Based on information from the City and FAA. 

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Cost Estimation for fiscal year - 1996

Cost category                                           Estimated cost
--------------------------------------------------  ------------------
Personnel                                                  $44,125,000
Cleaning                                                    20,648,000
Utilities                                                   19,438,000
Supplies and materials                                       9,681,000
Repairs and maintenance                                      8,374,000
Professional services                                        8,099,000
Police                                                       7,726,000
City interfund services                                      7,014,000
Stapleton International Airport                              5,749,000
Underground train                                            5,662,000
Variable rate bond fees                                      5,142,000
Aircraft rescue and fire fighting                            5,012,000
Management fees                                              4,001,000
Shuttle bus services                                         3,120,000
De-icing facility management fee                             2,027,000
Other contractual services                                   1,431,000
Fuel line fill-up                                              985,000
Miscellaneous                                                  455,000
======================================================================
Total                                                     $158,689,000
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Source:  DIA data as of June 1, 1995.  GAO examined all budget
estimates exceeding $1 million and concluded they were reasonable. 



Pursuant to a congressional request, GAO reviewed selected financial issues relating to the Denver International Airport (DIA), focusing on: 

(1) DIA construction cost growth; 
(2) differences between the DIA financial consultant's report and audited financial statements relating to the Denver Airport System's bond debt; and 
(3) Securities and Exchange Commission (SEC) jurisdiction over municipal bonds and the status and scope of its DIA investigation.


GAO found that: 

(1) DIA construction costs increased from an estimated $2.08 billion in May 1990 to $3.004 billion in February 1995; 
(2) the cost increases were due to changes in the scope of DIA and capitalized interest increased by $300 million due to the delay in DIA opening; 
(3) the two financial reports on DIA differed mainly due to their different purposes and the different time periods and scopes covered; 
(4) the financial statements covered both DIA and the Stapleton International Airport, while the consultant's report presented financial forecasts only for DIA based on certain assumptions about future events; 
(5) the differences in annual bond debt payments reflected the consultant's assumption that certain bonds would be refinanced in 1995, bond principal would be prepaid, lower interest rates would be paid on variable rate bonds, and passenger facility charges would be used to reduce annual debt service amounts; 
(6) the audited financial statements included all airport system debts while the consultant's report included only DIA construction bond debt; 
(7) municipal bonds are exempt from securities registration requirements and civil liability provisions, but they are subject to antifraud provisions; and 
(8) SEC is investigating DIA disclosures ofits baggage system issues under its antifraud authority.

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"Denver International Airport Construction and Operating Costs." University of Colorado. Web. 08 Mar. 2012. <http://www.colorado.edu/libraries/govpubs/colonumb/dia.htm>.


"U.S. GAO - Denver International Airport: Information on Selected Financial Issues." U.S. Government Accountability Office (U.S. GAO). Web. 08 Mar. 2012. <http://www.gao.gov/products/AIMD-95-230>.