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Salem council directs staff to explore funding options for airport minimum revenue guarantee
Summary
The Salem City Council voted unanimously to ask staff to return with options for funding a minimum revenue guarantee (MRG) to attract commercial air service to Salem Municipal Airport, while members emphasized limits on which city funds can be used and encouraged outside partners to help.
The Salem City Council on Sept. 8 voted to direct staff to return with possible recommendations for funding a minimum revenue guarantee (MRG) to recruit commercial air service to Salem Municipal Airport.
The motion, made by Councilor Linda Nishioka and seconded by Councilor Matthews, passed on a roll-call vote. Mayor Julie Hoy and all eight councilors recorded aye.
Councilors said they want staff to search broadly for funding sources and to seek contributions from regional partners and the business community rather than relying on general fund dollars. “I'm hoping that our staff can review opportunities that may not be as obvious to us,” Nishioka said when she moved the motion.
City Chief Financial Officer Josh Eggleston told the council that some economic development funding supporting the city’s economic development partner already comes from both the general fund and the urban renewal agency and stressed constraints on airport accounts. “The airport funds … are limited to airport operations. You can't use those for an MRG. Just with the FAA grant restrictions, airport operating dollars need to remain within the airport,” Eggleston said.
Councilors reiterated differing fiscal priorities. Several members said the city should avoid using scarce general fund dollars for an MRG and should seek commitments from local institutions and regional partners. Councilor Nordyke said the city’s general fund must prioritize public safety and livability needs, while Councilor Matthews and Councilor Brown noted that reestablishing commercial air service could expand access for a broader segment of the community beyond aircraft owners.
Councilor Tryggen urged the council to consider the city’s prior investments in the airport when soliciting partners and to think bigger than a single small airline. “Take a look at the $5,000,000 that we've already spent to get us to this point, as table stakes for our vision of the airport,” he said, urging a strategic conversation about scale.
Councilor Nishioka and other members suggested staff should review state, county and private funding possibilities and report back with a menu of options rather than a single proposal.
What the council did: The motion directs staff to return to council with possible recommendations for funding an airport MRG; it did not authorize expenditures or set amounts.
Votes at a glance: Motion to direct staff to return with funding recommendations — mover: Councilor Linda Nishioka; second: Councilor Matthews; outcome: approved (Ayes: Councilors Brown, Vang, Nordyke, Varney, Teigen, Nishioka, Matthews, Gwynn; Mayor Julie Hoy).
Background: The item was presented as an update on a potential MRG to recruit commercial air service. Councilors have previously debated the city’s role in subsidizing airline service and whether the city should use general fund, airport reserves, urban renewal, or partner contributions.
