Airport Commission approves $6.8 million budget

story by Aric Mitchell
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The proposed budget for 2011 took center stage at the Fort Smith Regional Airport Commission meeting Tuesday evening (Nov. 23).

For those following the continuing developments since October’s meeting and the Nov. 11 study session, there were no surprises. As discussed by staff and Commissioners Rick Deramus and Ryan Carter, who served as advisers, the total budget for the year ending Dec. 31, 2011, is set at $6,801,330.

Of the budgeted expenses, more than $2.5 million has been allocated to the operating budget, while capital expenses will be in excess of $4.2 million. Factoring in revenues, on-hand cash, investments, the bond reserve account, and the balances in FAA Escrow and Project Funds, the budget will still enter the black with a total fund balance at year’s end of around $2.4 million. After a brief discussion at Tuesday’s meeting, the Commission passed the financial plan unanimously.

Also factoring in to the upcoming budget, the bond offering issue has been delayed due to rapidly changing markets.

“We will continue to wait in our current position and if the market returns we will offer at that time,” said Airport Director John Parker. “Current bond debt service and reserve are accounted for (in the proposed budget).”

Current financial matters were also discussed among the commissioners as Parker called attention to where the airport stands on 2010 budget developments through October. Operating revenues are 87.4% of the budgeted amount, which is only slightly higher than what it was at this same point in 2009. Overall revenues are 64.9% compared to 50.9% in 2009.

Operational expenses are at 72.9% of the budgeted amount for the year. This number is almost unchanged from the 68.1% showing at the end of October 2009. Overall expenses were 59.6% against 43.3% from last year. Three unforeseen repairs bumped this number up: Airport 4 ($4,200), the 60-inch lawnmower engine ($2,000), and two new car wash brushes to replace the old ones, which had rusted through ($4,300). Parker emphasized the unexpected nature of these repairs, but also noted they “extended the useful life of the equipment.”

The 2010 budget is now 83.3% complete.

Other financial matters discussed involved certificates of deposit totaling $250,000, which matured on Nov. 22. After failing to land a successful bid for the continued growth of the monies — only one bank offered 0.05% while others declined because of the severely slashed interest rates — it was determined that the CDs would roll over into the airport’s money market account, which is currently earning 0.5% interest, approximately 10 times what a renewal would have delivered.

Reporting on the West Corporate Taxiway, Parker confirmed that the project is complete with final payment to be made in December. Once that check has cleared state reimbursement could come before the end of the year. The state has currently paid out half of the $500,000 grant amount.

The Airfield Electrical Project may not share the state of completion, but Parker told the Commission that about 60% of the lights had been replaced with heated halogen lamps at this time. The new lights are designed to enhance plane safety during snow and ice storms and other inclement weather.

In staff developments, airfield supervisor Steve Myers was recognized for completing a prestigious Wildlife Training Course, and it was announced that Michael Griffin would be attending the annual ICAS Conference in an effort to book the air show for 2011. Parker is hoping that Griffin’s efforts to bring the air show to Fort Smith will continue into the New Year.

The next meeting will be held at 5:30 p.m. Dec. 21, a week earlier than the normal schedule of the fourth Tuesday each month. The change is due to year-end preparations that the staff must make prior to 2011.