City of Delaware Airport Commission backs proposed fee, hangar rent increases to reduce general-fund subsidy

The City of Delaware Airport Commission on a unanimous vote supported staff-recommended adjustments to airport service fees and hangar rents as part of a broader review of fuel revenue and a plan to reduce general-fund support.

Commissioners approved a motion to support the adjustments after a staff presentation that outlined fuel-sales trends, revenue concentration in jet fuel, and options for eliminating a general-fund transfer. The commission’s action is advisory; final rate changes are administratively approved by city administration and may be acted on by the city manager and, where applicable, city council.

Airport staff told commissioners that avgas sales year-to-date were 40,791 gallons, down from about 49,000 gallons the prior year (a decline of roughly 8,300 gallons). Jet fuel accounted for the largest share of airport revenue: staff said jet fuel represented about 57% of airport revenue in 2025. Staff also said, “We currently have, dollars 280,000 or we had $280,000 committed to the airport in 2025,” describing the general-fund contribution the adjustments are intended to reduce.

To eliminate the general-fund transfer in a model staff called a “0 balance analysis,” the presentation showed several hypothetical changes: an 11% increase to 100LL margins (an estimated 10-cent per gallon margin increase, raising an average pump price cited at $5.62 to about $5.72), much larger increases to jet-fuel margins under the no-transfer scenario, and a 21% increase to hangar rents in the more extreme option. Staff recommended a more modest, pragmatic approach for now—raising hangar rents about 5% (a practice the airport had followed in prior biennial adjustments) and otherwise proposing a mix of smaller increases. A separate set of proposed 2026 rates in the materials showed a roughly 7% across-the-board increase in service fees in one scenario.

Staff cautioned that large increases to jet fuel risk making the airport uncompetitive within the 45-mile comparison set: the presentation said a jet-fuel price increase that achieves the no-transfer goal would place the airport “well above the 45 mile comparison of the other airports within our region and potentially hindering us from actually having people come to our airport and purchase fuel.” Commissioners discussed balancing revenue needs with competitiveness and noted the difficulty of directly comparing airports because of differences in runway length, services and tenant mixes.

Commissioners and staff highlighted two operational and data gaps that affect pricing decisions: (1) the airport lacks a tracking system to capture labor, materials and time tied to each fueling and service activity; staff said the city already owns software intended for that purpose but it has not yet been implemented for airport operations (a 2026 goal). (2) The commission received an operations update on the hangar pavement project (work began Aug. 25, per staff), including temporary striping to be replaced by permanent striping in about 30 days. Staff estimated the project cost at “right around $700,000” and said a temporary striping cost cited in discussion was $750. The pavement work stabilized areas between hangars F and G, and staff reported improved drainage after recent rains.

Commissioners asked for additional options, including a possible one-time, larger increase to bring hangar rents “closer to market” in a shorter time frame; staff said that would require further internal discussion and attention to lease terms, which are renewed annually.

On the policymaking path, staff said rate changes are administratively approved but that the city manager and city administration typically consider the airport commission’s recommendation. Staff expects to forward a formal proposal to the city manager within a few weeks for administrative review and possible further referral.

Votes at a glance - Motion to excuse Commissioner Fraser, Commissioner Gaab and Commissioner Ratcliffe: approved (yes: Mr. Acker; Mr. Lewis; Mr. Stevenson; Chair Everson). Outcome: approved. - Motion to approve the meeting motion summary (minutes) from the July 17, 2025 airport commission meeting: approved (yes: Mr. Acker; Mr. Lewis; Mr. Stevenson; Chair Everson). Outcome: approved. - Motion to support the proposed fee and rent adjustments (staff package, including recommended 5% hangar increase and other service-fee proposals): approved by commission vote (yes: Mr. Acker; Mr. Lewis; Mr. Stevenson; Chair Everson). Outcome: approved. Final administrative adoption by the city manager/administration is required.

What’s next Staff will prepare a proposal for the city manager and said it will return to administrators and, if required, city council. Commissioners asked staff to evaluate a larger, one-time hangar-rent adjustment for consideration next year while continuing regular, smaller increases to stay current with inflation. Staff also said implementing the city’s cost-tracking software for airport operations in 2026 is a priority to refine per-service cost and margin estimates.

The commission also received an update that a consultant study completed earlier recommended options for regional cooperation—partnership with Delaware County or the creation of a regional airport authority—and staff said city/county discussions are ongoing but the commission has not been included in later stages of those talks.