During a recent government meeting, council members discussed a proposed 4.3% consumer price index (CPI) rate increase for existing airport rental hangars and land leases for fiscal year 2025. The proposal, which was moved and seconded, sparked a debate among council members regarding its adequacy in light of current inflation rates.

Councilman Bills expressed concern that the proposed increase is insufficient, suggesting that a rate closer to 6% or 7% would be more appropriate given the economic climate. He noted that the 4.3% adjustment appears to lag behind inflation, which has been significantly higher in recent years.

City officials, including Lindsay and Crystal, clarified that the CPI index used for adjusting land leases is based on data from the previous year, specifically 2023, which limits the city's ability to raise rates beyond the established 4.3%. They explained that while the city could potentially increase rental rates for hangars beyond this CPI figure, they opted for a more conservative approach following a substantial 20% increase in the previous year.

Councilman Rodriguez echoed concerns about the proposed increase, questioning how it aligns with current inflation trends. He emphasized that the city’s rental rates are effectively two years behind the current economic conditions, which could hinder the airport's financial sustainability.

In response to these concerns, city officials acknowledged the need for a review of the CPI index used for future leases and indicated a willingness to explore alternative indices that may better reflect current economic conditions. They committed to providing further information to the council regarding the selection process for the CPI index.

The council ultimately moved forward with the action item to authorize the mayor to sign the resolution for the 4.3% increase, but discussions highlighted a clear desire among council members to reassess how rental rates are determined in the future to better align with inflation and operational costs.