Flagstaff council holds first reading of airport parking and badging fee increases

City staff on Tuesday presented a first reading of an ordinance that would add monthly parking and lost‑ticket fees and create security badging charges at Flagstaff Pulliam Airport.

Airport Director Brian Gull told the Flagstaff City Council that the proposal includes a new monthly parking option and a lost‑ticket fee to recover revenue from about 150 lost‑ticket transactions identified in 2024. Gull said the ordinance would increase the terminal daily rate from $8 to $10 and the economy lot rate from $6 to $7 effective July 1, 2026, while the new monthly and lost‑ticket fees would take effect Jan. 15, 2026 if adopted. He described two implementation approaches for monthly rates: an automated system that discounts stays of a given duration or a permit model that staff could pause if lots fill up.

Heidi Derryberry, the city’s budget director, said the proposed parking changes are projected to yield roughly $122,000 annually (daily/weekly/monthly increases and the lost‑ticket fee) and that adding badging fees would generate about $11,000 a year. Derryberry said the analysis used 2024 transaction data and assumed some behavior change once fees are in place.

Gull also described a new security badging structure required by the Transportation Security Administration. The proposal would charge about $40 for an initial air operations area (AOA) badge and $20 for renewal, and higher fees for sterile/boarding‑area badges (about $75 initial, $50 renewal). Lost‑badge fees would escalate ($50 first lost badge, $75 second, $100 third and beyond). Gull said badges are valid up to two years per TSA rules and that the airport currently issues roughly 135 AOA badges and 90 sterile‑area badges annually.

Council members queried whether a lost‑ticket fee might prompt drivers to return to their vehicles and whether the city would cap monthly permits. Gull said comparative research showed other airports charge larger lost‑ticket fees and that staff will monitor use and adjust as needed; he said permit issuance could be limited based on parking availability.

The ordinance includes an exemption for contractors and city staff working on city‑funded projects so the city does not effectively pay itself. Gull said the airport is an enterprise fund that still relies in part on general fund support, and staff framed the changes as part of efforts to move toward self‑sufficiency.

Council approved a first reading by title; staff will return the ordinance for a second reading and adoption at the Dec. 16 meeting, with the earliest effective dates for the new monthly and badging fees in mid‑January 2026 and the daily rate increases planned for July 1, 2026.