Airport staff say fee increase will restore operations; 2026 budget reflects expiring CARES funding

Anchorage — Municipal airport staff briefed the assembly on the 2026 proposed airport budget and recent fee changes, telling members the department’s near‑term finances reflect an expiring federal grant and recent fee ordinance.

Staff reported the 2025 revised appropriation included temporary CARES Act funding; with that grant expiring, the department’s 2026 appropriation increases to roughly $2.9 million driven by operating changes tied to strategic‑planning work and a new maintenance technician position. Presenters said the airport’s 2026 capital plan for Merrill Field is expected to be largely federally funded with the local match typically in the single‑digit percentage range.

Regarding fees, the assembly recently passed an ordinance increasing mandatory airport charges and airport staff estimated those changes will yield about $300,000 in additional revenue for 2026. Staff told members the revenue increase paired with anticipated expense forecasts will return the airport closer to a balanced operating position following the end of CARES funding.

Staff asked the assembly to allow the department to complete its strategic plan and said operational changes tied to that plan would be reflected in first‑quarter budget revisions, not in the initial 2026 proposal.

What happens next: airports staff said the department will continue coordinating strategic‑plan recommendations and that any operational adjustments tied to fee changes or strategic outcomes will be reflected through the first‑quarter revision process for the municipal budget.