Commission discusses service fees, hangar rates and fuel sales as staff prepares a rates review

Airport staff told the commission they will review service fees, hangar rates and landing fees as part of the city's budget work. Staff said service fees and rental rates were last increased in 2023 (general fees) and hangar rates were increased in 2024 (a 5% increase at that time), and that the commission generally aims to revisit rates every two years.

Staff said revenue primarily comes from fuel sales and hangar rents, with service fees the smallest revenue stream. Staff reported year-to-date fuel sales of about 23,000 gallons of 100LL avgas and about 61,000 gallons of Jet A; by comparison the commission was told 2024 figures were approximately 20,000 gallons of avgas and 68,000 gallons of Jet A. Staff said fuel sales fluctuate with market conditions and activity (flight school/weather) and that fuel suppliers and service levels factor into pricing and margins.

Commissioners asked how local rates compare with nearby airports. Staff said comparisons are imperfect — runway length, amenities and services differ — but cited nearby examples: manually sliding-door hangars at the airport range in rent and other nearby newer hangars listed near $2.20 per square foot (example: Marysville), with other local comparisons cited in discussion.

Staff also noted that hangars D, E and F are on a city note with several years remaining and that historical obligations and missed adjustments mean the city wants to resume a regular rate-review schedule.

Ending: Staff said they will review service fees and hangar rates as part of the budget process and will bring findings back to the commission.