SUBJECT:
Title
Erie Municipal Airport Update
Department
DEPARTMENT: Public Works
Economic Development
Finance
Presenter
PRESENTER(S): David Pasic, Public Works Director
Julian Jacquin, Director of Economic Development & TOEURA
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Lockie Woods, URA Development & Accounting Analyst
Time
TIME ESTIMATE: 90 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
The airport fee proposal developed by the Airport Economic Development Advisory Board (AEDAB) increases operating revenue by aligning fees and rents with market rates and the cost of service. The proposal reduces the annual operating shortfall in the Airport Fund and decreases reliance on General Fund subsidy.
The new aircraft hangar RFP supports long term revenue generation through ground lease payments and hangar lease income. Market studies confirm strong and sustained demand for additional hangar capacity at Erie Municipal Airport. New hangars create predictable, recurring revenue dedicated to airport operations.
Together, the fee proposal and hangar development strategy increase Airport Fund revenues, reduce General Fund support, and advance compliance with Town Municipal Code requirements for the Airport Fund to operate as self-supporting.
Policy
POLICY ISSUES:
Town Council oversight is required to ensure Erie Municipal Airport operations remain consistent with Town Municipal Code, which requires the Airport Fund to operate as self-supporting without ongoing General Fund subsidy. Council direction on airport fees, leases, and operating agreements directly affects the airport's financial performance, service levels, and long-term viability, and will guide implementation of actions intended to reduce subsidies and strengthen the Airport Fund. Council direction also informs the Town's participation in regional aviation policy discussions through the NW Mayors and Commissioners Coalition (NWMCC).
Recommendation
STAFF RECOMMENDATION:
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