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Trustees approve $370,000 one‑time transfer to restore airport fund balance; enterprise status to be reviewed
Summary
Trustees approved a $370,000 transfer from the general fund to the airport enterprise fund to eliminate a negative balance and create a three‑month operating reserve; staff warned the transfer will likely cause the airport to lose enterprise status for 2026 unless revenues recover.
The Buena Vista Board of Trustees on July 22 approved a one‑time $370,000 transfer from the town’s general fund to the airport enterprise fund to eliminate a negative balance, restore unrestricted airport fund balance and establish a three‑month operating reserve.
Why it matters: Fuel sales are the airport’s principal revenue source and margins fell in recent years after the town experimented with contracted fuel pricing that reduced jet‑fuel margins. The airport also absorbed maintenance and capital costs that increased expenditures. Staff and the airport advisory board said restoring the fund balance will stabilize operations ahead of the 2026 budget process.
Staff described the conditions leading to the shortfall: higher fuel prices combined with a contracted fuel program that reduced margins between 2022 and 2024, declines in high‑altitude military testing flights that previously generated revenue, and accumulated deferred maintenance. The board heard that reverting from the contracted pricing arrangement to retail pricing this year has restored margins and that operations and activity are increasing in 2025, but the airport fund remained negative in the current year without a transfer.
The transfer will restore a positive unrestricted airport fund balance and satisfy the town’s reserve policy that requires a three‑month operating amount in enterprise funds. Staff cautioned that the transfer exceeds 10% of the airport’s 2025 revenue; under state rules that could cause the airport to lose its enterprise status for 2026. Enterprise status affects how the town can issue debt tied to the airport; staff said losing the designation for 2026 would not be permanent if 2026 revenues improve and the board may restore the status in future years.
Trustees discussed longer‑term steps to strengthen airport finances — restoring retail fuel margins (which staff said is already beginning to occur), stabilizing staffing with a small number of full‑time positions, pursuing FAA projects that include grant matches, pursuing modest marketing to increase traffic, and asking the county to consider a larger annual contribution given the airport’s countywide role in emergency response.
Ending: Trustees approved the $370,000 transfer by roll call and directed staff to include airport‑fund recovery scenarios in the upcoming budget process. Staff will continue to pursue operational efficiencies and revenue opportunities while preparing materials to discuss enterprise status and capital needs during the budget cycle.
