Oakdale council approves airport hangar rate increase, phases in CPI adjustments

The Oakdale City Council approved a resolution authorizing increases to airport hangar and tie-down lease rates and establishing ongoing Consumer Price Index (CPI) adjustments capped at 3% per year beginning in 2028.

City staff explained that the airport’s last rate increase was in April 2013 and recommended updating rates to reflect market conditions and to keep the airport financially self-sufficient without general fund subsidies. Staff recommended an 8% increase for city-owned and private hangars and a 25% increase for tie-downs effective Jan. 1, 2026, followed by an additional 8% (hangars) and 10% (tie-downs) in 2027. Beginning Jan. 1, 2028, rates will adjust annually based on the CPI for the San Francisco–Oakland–San Jose area, capped at 3% and never negative unless ended by council.

Examples from staff’s presentation: the current monthly tie-down fee is $40 and is proposed to rise to $50 in 2026 and $55 in 2027. City T-hangars would move from a current $185 minimum to a $200 minimum in 2026, and rise further in 2027 consistent with the phased increases. Staff said the proposed rates would remain below comparable nearby airports even after increases.

A tenant at the airport, Fred Smith, spoke in support of the increase and asked that some of the additional revenue be directed toward maintenance; he told council, “I think this rate increase is a good idea,” and thanked staff for maintenance work. Council members asked how tenants had been notified; staff said tenants were informed at prior tenant meetings and that the city had distributed proposed rates in September. A motion, second and roll call resulted in a recorded 4-0 vote in favor of the resolution.

Staff described the fiscal impact as increased revenue to the aviation fund (Fund 657) to keep the airport self-sufficient and to provide matching funds for federally funded projects and maintenance needs.