CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2021 AND 2020

PREPARED BY THE FINANCE DIVISION

DEPARTMENT OF AVIATION
AN ENTERPRISE FUND OF THE CITY & COUNTY OF DENVER
COLORADO
CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEARS ENDED
DECEMBER 31, 2021 AND 2020

PREPARED BY THE FINANCE DIVISION

DEPARTMENT OF AVIATION
AN ENTERPRISE FUND OF THE CITY & COUNTY OF DENVER
COLORADO
 ANNUAL COMPREHENSIVE FINANCIAL REPORT
December 31, 2021 and 2020

TABLE OF CONTENTS

Introductory Section (Unaudited)

Letter of Transmittal 2

Background 2

GFOA Certificate of Achievement 12

City Officials 13

Organizational Chart 14

Financial Section

Independent Auditor’s Report 15

Management’s Discussion and Analysis (Unaudited) 18

Financial Statements

Statements of Net Position 44

Statements of Revenues, Expenses, and Changes in Net Position 46

Statements of Cash Flows 47

Notes to Financial Statements 49

Required Supplementary Information (Unaudited)

Schedule of Airport Proportionate Share – Net Pension Liability 109

Schedule of Airport Contributions – Net Pension Liability 110

Other Postemployment Benefit Plans

Schedule of Airport Proportionate Share – Net OPEB Liability 111

Schedule of Airport Contributions – Net OPEB Liability 112

Schedule of Airport Proportionate Share – Implicit Rate Subsidy 113

Other Information Section (Unaudited)

Schedule of Compliance with Rate Maintenance Covenant

as Defined in the 1984 Airport System General Bond Ordinance
Airport Revenue Account 115

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 116

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

 ANNUAL COMPREHENSIVE FINANCIAL REPORT
December 31, 2021 and 2020

Statistical Section (Unaudited)

Financial Trends

Summary of Net Position 122

Summary of Changes in Net Position 123

Summary of Operating Expenses 124

Summary of Nonoperating Income and Expenses 125

Revenue Trends

Summary of Operating Revenues 126

Market Share of Air Carriers/Enplaned Passengers by Airline 127

Historical Passenger Facility Charge Revenues 128

Debt Capacity

Outstanding Debt Principal by Type 129

Debt Service Coverage under the Bond Ordinance 130

Operating Information

City and County of Denver Demographics and Economic Statistics 131

City and County of Denver Principal Employers 132

Passenger and Operating Statistics 133

Emplaned Passengers by Major Airline Category 134

Aircraft Operations 135

Landed Weight 136

Enplaned Cargo Operations 137

Career Service Employees 138

Nature, Volume and Usage of Capital Assets 139

Summary of Insurance Coverage 142

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM

 ANNUAL COMPREHENSIVE FINANCIAL REPORT
December 31, 2021 and 2020

2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT

INTRODUCTORY SECTION (UNAUDITED)

CITY & COUNTY OF DENVER | MUNICIPAL AIRPORT SYSTEM Page 1 of 142

 ANNUAL COMPREHENSIVE FINANCIAL REPORT
December 31, 2021 and 2020

Letter of Transmittal

June 8, 2022

To the Public and Fellow Employees

We are pleased to present the Annual Comprehensive Financial Report of the Municipal Airport System for the fiscal
years ended December 31, 2021 and 2020. This report was prepared by the Airport’s Finance Division in
collaboration with other Airport personnel. These financial statements were audited by Moss Adams, LLP,
independent certified public accountants.

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. 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 or
business-type activities that are authorized to issue their own revenue bonds. Enterprise funds also 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 businesses, 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 2021, DEN was the third busiest airport in the United States
and the third busiest in the world, serving 58.8 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 Peña 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.

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