Airport director outlines $1.029M operating budget, revenue plan to reduce city subsidy

Jeff, an airport staff member, briefed the committee on the airport’s operating budget and revenue outlook, saying the airport’s FY2026 operating request is just over $1 million and that the department continues efforts to reduce the city subsidy by increasing revenue from leases and fees.

Jeff said the airport has eight full‑time employees and one part‑time employee and that most operating expenses are salaries, airfield lighting and routine contracts. He told the committee the airport currently generates about $550,000 in recurring revenue from hangar leases, landing and fuel flowage fees and special‑event and game‑day revenues, and staff said a recent rent study supports updating leases and fees to better match comparable airports. Jeff estimated that updated leases and fee changes could add roughly $300,000 if negotiations go favorably.

Committee members asked about the subsidy trend and the airport’s strategy to be more “business minded.” Jeff said the airport’s cost‑recovery portion has improved since 2020 and staff have worked to reduce the general‑fund subsidy by about 17% year over year since 2020; he said the airport is aiming to be fully self‑sustaining on its general‑fund budget. Staff identified negotiating FBO lease terms (which cover about 70% of leased acreage) as key to increasing revenue.

Committee members did not take a committee vote on the airport operating budget during the session; staff said further detail and fee recommendations will be discussed during upcoming administrative committee meetings.