Flagstaff airport commission to hire rates-and-charges consultant as budget gaps persist

Flagstaff Airport Commission members spent the meeting reviewing airport finances and a proposed rates-and-charges study intended to address revenue shortfalls and aging infrastructure. Airport staff told commissioners the airport is an enterprise fund that has not historically been self‑sustaining and currently lists more than 30 unfunded maintenance projects and a vehicle fleet averaging about 20 years old.

“We have identified currently more than 30 unfunded maintenance projects here at the airport that we're trying to find a funding source for,” airport staff reported. Staff also said November operations were the highest since 2021 and that year‑to‑date enplanements were “a little over 70,000.”

To check compliance with Federal Aviation Administration (FAA) expectations and to set defensible fees for aeronautical activities, staff recommended hiring a consultant to perform a rates‑and‑charges study. The consultant would benchmark Flagstaff against similar airports, develop a methodology for aeronautical fees (landing fees, fuel flowage fees, aircraft storage/lease rates and commercial use permits) and recommend a fee schedule. Staff said non‑aeronautical and administrative fees—such as parking rates, security badging fees and ground transportation permits—would be reviewed internally and based on cost recovery where appropriate.

Claire Harper, airport communications manager, said the airport plans to pursue the consultant route for aeronautical fees and to bring proposed changes back to the commission and, if required, to city council for approval. Harper noted the airport will follow FAA guidance that fees be competitive and reasonable and that the study will document methodology to meet that compliance requirement.

Commissioners pressed on scope and impacts. “Is there any desire for the airport or the city council to look back into supporting the airport more through the general fund?” asked Commissioner Schaus. The question drew discussion of the city’s broader budget process; staff said they will continue making formal requests during the city’s fiscal‑year budget retreat but cautioned that prior general‑fund requests have largely been unmet.

Commissioner Jackson warned of unintended demand effects if fees rise across multiple categories. “I would hate for this to be something that is, like, the final stab where everyone's driving to Phoenix because it's cheaper,” Jackson said, urging caution about a series of fee increases that compound on renters and travelers.

Staff estimated the consultant study would likely take about six months but noted firms often have preexisting datasets that speed the work. Staff also flagged potential options to raise non‑aeronautical revenue—rental car customer facility charges, expanded concessions and new parking categories such as monthly permits—but said each option requires analysis of local impacts and, in some cases, council approval.

The commission did not take a vote on fees at the meeting; staff said next steps are to define a scope of services, solicit proposals, enter a contract and return to the commission with proposed fee changes and associated analyses.