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Town treasurer flags airport fund shortfall; staff propose a mid‑year transfer and policy review
Summary
Town Treasurer Philip reviewed 2024 year‑end fund balances, warned of a negative airport fund balance driven by lower fuel sales and timing of reimbursements, and proposed transferring roughly $320,000 from general‑fund unrestricted balance to restore airport reserves pending policy decisions.
Town Treasurer Philip briefed the Board of Trustees on April 22 on the town’s 2024 financial results and on a persistent shortfall in the airport enterprise fund.
Philip said the town closed 2024 with a modest net reduction in the general fund balance, noting higher interest income that offset flat sales tax receipts. The airport fund showed a net decrease of about $222,000 in 2024; Philip attributed the airport shortfall to a combination of lower jet‑fuel sales after national fuel‑price volatility, a decline in testing and training flights, timing of grant reimbursements and an unfavorable fuel‑supply arrangement that had been in place.
Philip and staff said they examined trends and margin impacts at the airport, including a now‑terminated contract with a fuel provider that staff believe reduced airport margins. He said airport advisory board members and staff are pursuing revenue options including fee schedule changes and seeking additional county support; the county historically contributed about $52,000 annually and staff recommended a discussion with Chaffee County about a larger, sustained support level.
To address the immediate negative fund balance and to establish a prudent reserve, Philip proposed a mid‑year transfer of about $320,000 from the town’s general fund unrestricted balance (reported in the packet at roughly $3,000,000) to bring the airport fund to zero and then up to a three‑month operating reserve. He asked trustees to consider adopting a clearer reserve policy during the spring and to weigh whether the town’s general‑fund emergency reserve target (currently about 27% plus 3% TABOR) should be increased toward the equivalent of six months of operating expenses.
Philip recommended the board consider an overarching finance policy refresh, a written reserve policy (including minimum reserve levels for enterprise funds), and a consolidated, shorter finance policy that would be supported by subpolicies (investment, capital improvement, procurement). He said staff expects to return to the board with draft policies in May for further discussion and possible adoption.
Trustees asked for historical examples and stressed they wanted to adopt reserve policy changes before any transfer so the board could set the target and then execute transfers consistent with adopted policy. Philip said staff would present past‑year examples and formal policy drafts at the next meeting.
On the airport tank infrastructure, trustees asked about inspection timing and estimated cost; staff said estimates and scheduling depend on an inspection that requires the tank to be nearly empty and that the airport team is arranging the inspection.
Philip’s presentation included a request that trustees give staff direction to draft policy language and to consider a one‑time transfer ahead of the 2026 budget process to position the airport fund on a sustainable footing.
