FY25 report: airport revenues up; commissioners question housing purchase recorded as operating expense

Airport finance staff reported fiscal‑year 2025 totals to the commission on Aug. 12, saying airport revenues reached $30,206,530, an increase of about $2.77 million from the prior year driven primarily by fuel sales. Operating expenses (excluding debt service) rose to roughly $20.7 million.

Manager Warren Smith told the commission that a $2.3 million employee‑housing purchase was paid from the airport operating budget after a town meeting transfer of $2.8 million from retained earnings into the operating budget. Smith said the purchase route was taken because the airport did not have a previously approved capital article and staff concluded the acquisition was needed to house a new airport manager. He acknowledged commissioners’ preference that such real‑estate purchases ordinarily be presented or treated as capital expenditures and said staff would consider presenting the item differently in future reports.

Commissioner questions focused on apples‑to‑apples comparisons: if the housing purchase is excluded from operating expenses, Smith said the underlying operating expense increase over the prior year would be roughly $700,000. Commissioners asked for clearer MD&A presentation in future quarterly and annual reports so operating expense trends are not skewed by one‑time, non‑recurring real‑estate purchases.

Other FY25 highlights presented: fuel sales and investment interest rose, rental and fee income increased modestly, vehicle/parking revenues rose, and operating expenses including debt service finished near 88% of the annual budget allocation. Airport staff agreed to provide alternative presentations that exclude the housing purchase for trend comparison.