Understanding the challenges the Airport faced with respect to its revenues and expenditures, the City engaged Aviation Management Consulting Group (AMCG) to perform a financial analysis of the airport.

The Fee Study

This Financial Analysis would include a General Aviation Fee Study to analyze and make recommendations for the Airport rates and fee schedule. Specifically, the Fee Study would:

1. Identify the elements of the existing fees at the Airport
2. Identify current industry practices
3. Analyze fees and information from comparable and competitive airports
4. Provide recommendations regarding methodologies and types of fees
5. Provide recommendations regarding fee amounts

The completed study made a number of findings (the full study is available under the "Documents" section) including identifying several common revenue sources not currently utilized by the airport. Importantly, the study illustrates that a cost-center approach is the best means to equitably charge rates and fees. Under this approach, fees would be match to activity categories such that those activities that generate the greatest financial costs to the Airport would provide commensurate revenues through its fees.

Fee Study Recommendations

The Fee Study made a number of recommendations, particularly increasing the Fuel Flowage Fee (charged to FBOs and private fuel farms) and implementing several new fees: a Landing Fee for larger aircraft, an annual Aeronautical Permit Fee for airport businesses, an Airside Access Fee, and a Hangar Wait List fee. It also recommended the Airport to review the rental rates it charges for city owned hangers so that they may be more consistent with what is charged in the private sector.

While the Airport continues to evaluate its fee options, it has determined that implementing most of AMCG's recommendations would eliminate the debt-driven budget deficit expected over the next 5 years.