Changes to the lease rates at the Georgetown Municipal Airport could be considered by City Council in January, Transportation Director Ed Polasek said.
Polasek said the city first discovered the airport's revenue would not be able to cover ongoing maintenance costs after the airport was moved under his department as part of a reorganization in 2012. The city then commissioned consultants CH2MHill to complete a business analysis, which recommended the city further study market lease and fuel rates.
If approved, the changes, which include increases to hangar, land and airplane tie-down rates, would go into effect March 1 and are expected to help offset a shortfall in the airport budget caused by increased maintenance costs, he said.
A budget shortfall of more than $200,000 is projected for the airport's 2015-16 budget, Polasek said.
"[The new rates] should start closing the budget gap significantly," he said.
However, the proposed rate increases will not be enough to close the gap completely, and further review of the airport's fuel rates is needed, he said.
Polasek said further discussion about the fuel rates is anticipated to continue through 2015 as the city is also expected to seek bids for fuel as well.
The fuel bid process could begin after Russ Volk takes over as airport manager in early 2015. Volk previously served as the airport manager in Cedar City, Utah.
The whole fuel policy is a longer-term discussion that we are going to have along with the fuel bid, Polasek said.
In July city staff discontinued a volume-buyer discount on aviation fuel sales until it would be financially feasible to resume discounts. Polasek said staff stopped the discount after discovering it had never been approved by City Council. The discount could be part of the fuel policy discussions as well, he said.
For more information about airport improvement projects, see Pages 22-23.
Changes to the lease rates at the Georgetown Municipal Airport could be considered by City Council in January, Transportation Director Ed Polasek said.
Polasek said the city first discovered the airport's revenue would not be able to cover ongoing maintenance costs after the airport was moved under his department as part of a reorganization in 2012. The city then commissioned consultants CH2MHill to complete a business analysis, which recommended the city further study market lease and fuel rates.
If approved, the changes, which include increases to hangar, land and airplane tie-down rates, would go into effect March 1 and are expected to help offset a shortfall in the airport budget caused by increased maintenance costs, he said.
A budget shortfall of more than $200,000 is projected for the airport's 2015-16 budget, Polasek said.
"[The new rates] should start closing the budget gap significantly," he said.
However, the proposed rate increases will not be enough to close the gap completely, and further review of the airport's fuel rates is needed, he said.
Polasek said further discussion about the fuel rates is anticipated to continue through 2015 as the city is also expected to seek bids for fuel as well.
The fuel bid process could begin after Russ Volk takes over as airport manager in early 2015. Volk previously served as the airport manager in Cedar City, Utah.
The whole fuel policy is a longer-term discussion that we are going to have along with the fuel bid, Polasek said.
In July city staff discontinued a volume-buyer discount on aviation fuel sales until it would be financially feasible to resume discounts. Polasek said staff stopped the discount after discovering it had never been approved by City Council. The discount could be part of the fuel policy discussions as well, he said.
For more information about airport improvement projects, see Pages 22-23.
