City updates airport fuel operations; council hears plan for pricing and first fuel purchase

City staff told the Commerce City Council on Sept. 16 that the airport has made its first fuel purchase and that staff have developed a pricing calculator to set fuel prices that cover overhead while remaining competitive with nearby airports.

Why it matters: The airport fuel farm project has grant reimbursements and local matching needs. Staff recorded a one-time fuel expenditure of roughly $31,000 in a budget amendment and said the annual TxDOT reimbursement and grant arrangements require the expense to be recorded in the grant fund. The council also approved related budget cleanups to reflect the purchase.

Details: Assistant City Manager Miss Campbell said the city purchased its first tank of fuel and trued up $31,000 in budget expense. City Manager Lisenby explained the pricing approach: staff built a basic cost-projection calculator to determine break-even and potential profit margins, and then compare that result to regional fuel prices to avoid under- or over-pricing. Lisenby emphasized that the airport advisory board is consulted but does not set prices because board members may have a vested interest in lower prices for their aircraft.

Staff noted pilots sometimes travel a short distance to purchase lower-priced fuel in neighboring communities; the city's intent is to be competitively priced while covering costs so the airport does not require ongoing subsidy. The budget amendment reflecting the fuel purchase passed as part of the consent/budget-amendment item.