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North Platte approves one-year interlocal agreement to smooth airport tax revenue flows
Summary
Council approved an interlocal agreement with the North Platte Airport Authority to provide monthly allocations of tax proceeds to the authority; councilors said the one-year arrangement flattens cash flow and will be reevaluated after the term.
The City of North Platte on Sept. 16 approved a one-year interlocal agreement with the North Platte Airport Authority to provide monthly allocations of tax revenue to the authority instead of periodic lump-sum payments.
City staff explained the arrangement would let the airport receive one-twelfth of its anticipated tax revenue each month, smoothing its cash flow so it does not need to borrow at higher interest rates. Under the terms discussed, the airport would pay an administrative fee; staff described a 3.5% fee structure used in related city arrangements and an administrative collection fee of 1% that other entities pay.
Council discussion noted the approach keeps money “in the right pocket” while providing operational relief to the Airport Authority; several council members supported a one-year term to evaluate actual costs. One councilor estimated the airport would pay roughly $35,000–$40,000 in fees under the arrangement, while another councilor said his estimate was closer to $60,000–$70,000; staff said they would pull the figures and reconcile them.
The motion to adopt the resolution and approve the interlocal agreement was moved by Bowles and seconded by Flanders; the council approved the agreement and authorized the mayor to sign the necessary documents.
