Fulton council rejects proposed rate-book changes after airport rent debate

The Fulton City Council voted 4-3 to reject Bill 17-43, an ordinance that would have amended the city’s 2025 schedule of fees and charges to raise airport rates, after substantive public comment from tenants and extended council debate.

The bill, presented for reading during the meeting, would have increased several airport fees and included provisions tying future increases to the Missouri consumer price index with a stated maximum of 5 percent per year. Council members debated whether to adopt a 5 percent increase, a larger increase, or no increase at all.

Airport tenants and pilots spoke during the public-comment portion. “The city has not honored their pledge,” said David Holubaugh, treasurer of the Kingdom Pilots Association, who said hangar tenants had been promised further discussion before rate changes were adopted. Holubaugh warned that the proposed rent at Elton Hensley Memorial Airport would be “63% higher than the average of 6 surrounding communities” if the ordinance passed.

Resident pilot Lance Campbell said current rates already stood “approximately 36% above the surrounding community” and urged that any automatic CPI adjustments be capped relative to neighboring rates to avoid a “runaway effect.” Ryan De Lassman, another airport tenant, asked directly: “Who is the controlling body for the airport? Who determines the budget?” and urged reinstatement of an advisory board so tenants could have ongoing, two-way discussions with city officials.

City staff and council members discussed the city’s financial position for the airport and the mechanics of ground leases. A speaker identified in the meeting as Dustin (city finance staff) confirmed the last airport rate increase occurred in February 2019. Council members said the city receives revenue from tenants and federal sources; one speaker noted the city collects roughly $125,000 from tenants and “over $100,000 federally every year,” and raised questions about accounting items such as depreciation and how hangar revenues are allocated.

During council debate, Councilwoman Nelson proposed a 5 percent increase aligned with recent CPI figures and said the measure would help the city catch up on a deficit and build a small reserve for improvements and matching funds for grants. Councilman Stone moved an amendment to calculate airport rates at a 5 percent increase and provided specific new rates in his motion. That amendment failed on a voice vote (three in favor, four opposed). A subsequent motion to raise rates by 10 percent received four yes votes and three no votes; council members said the ordinance required a larger majority and that 4–3 did not meet the threshold, so that motion also failed.

Council members did adopt a narrower amendment clarifying the Tanglewood facility’s weekend rate: weekend rates would apply to Friday, Saturday, Sunday and city-recognized holidays. After further votes the council took a final vote on Bill 17-43; the bill failed on a 4-3 voice vote and therefore will not be enacted as presented.

Council members asked staff to provide clearer airport financials before future votes. One council member asked Dustin to provide “the numbers in between” so the council would have more information at the next meeting; multiple members said they wanted better visibility into revenues, expenses and any federal reimbursements before approving rate changes.

The discussion highlighted recurring tenant concerns: lack of an advisory board, perceived lack of two-way consultations, and rates substantially higher than neighboring airports. Council members who opposed immediate increases said they wanted clearer accounting and better documentation of airport revenues and expenses before raising fees; members who supported some increase cited rising costs, the need to build reserves, and the ability to apply for matching grants.

The council did not adopt this ordinance. Council members indicated the airport rate structure and related policy questions would return to the council once staff supplies more detailed financial information and potential alternatives for tenant engagement.