Commission approves two‑year operating and capital budget for FY2026–27, includes Southfield Phase 2 parking expansion

The Santa Barbara Airport Commission voted unanimously on May 21 to approve the airport’s two‑year operating and capital budget for fiscal years 2026–27.

Business Manager Jonathan Abad presented the proposed budget. Abad said the airport is an enterprise fund that receives no general‑fund subsidy and relies on tenant rents, user fees and federal grants. The commission approved a budget that staff said funds operating needs while advancing capital projects including long‑term parking, terminal improvements and a taxiway extension.

The approved budget as presented includes about $8.5 million in capital projects for FY26 and roughly $4.9 million in FY27. A major FY26 item is Southfield Phase 2, described in the presentation as a parking expansion project estimated at about $5.8 million that would add roughly 400 parking spaces and—when complete—produce an estimated net savings and additional revenue of about $1 million per year. Staff said the project could reduce use of the overflow lot and would require a shuttle program outside the busiest months.

Abad outlined other capital items and funding sources. The Customer Facility Charge (CFC), a rental‑car collection, is projected to provide roughly $1,000,000 annually and will be used to fund about half of Southfield Phase 1/Phase 2 parking work. The Passenger Facility Charge (PFC) fund held about $6.9 million at the end of FY24, with staff proposing to apply roughly $5.1 million of accrued PFCs to reimburse operating reserves and to purchase a new aircraft rescue and firefighting (ARFF) truck pending FAA approval of a formal application.

The budget document showed several targeted capital or maintenance items: $750,000 for Carneros Creek maintenance to address silt and reduce flooding risk; an estimated $1.2 million airport share for the Taxiway Bravo extension (airport portion of a larger FAA‑funded project); and an allocation for the General Western Arrowhangars stabilization or potential demolition work. Abad told commissioners the taxiway project remains in environmental review and that most construction funding is expected from FAA grants.

On staffing, staff proposed a total of about 82 authorized positions in the airport department—about nine more than the prior fiscal year. Some positions were already hired as overhires and would be regularized; others (including two additional airport police officers and an assistant airport director) remain unfilled pending council approval. Staff also noted increases in supplies and services driven by security equipment needs, marketing incentives for potential new routes and rising utility and maintenance costs.

Commissioners asked clarifying questions about pavement costs, runway/airspace approaches and timeline estimates for consultant‑assisted noise mitigation work. Abad and Director Hastert said a consultant will assist with designing new GPS approaches to reduce community noise impacts; staff estimated the approach development could take up to a year without additional airport expense and one to three years if the airport relies on FAA‑led publishing timelines.

The motion to approve the two‑year operating and capital budget for fiscal years 2026–27 was made, seconded and carried unanimously. Staff said the budget will proceed to the city council for final approval as required by city procedures.