Commission defers fuel-farm expansion, adopts automatic fuel-pricing margin and raises fuel revolver
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Summary
Officials deferred the $3 million fuel-farm capital request to FY2027, approved an automated retail fuel-pricing margin of $4.90 per gallon, moved to increase the fuel revolver to $11 million, and recommended seasonal staffing and housing steps to support fuel operations.
The Nantucket Memorial Airport Commission took a package of fuel-related actions April 14 after a detailed briefing from the fuel subcommittee and airport staff.
Deferral of expansion: Commissioner Levitt moved to defer the $3,000,000 fuel-farm expansion capital request to fiscal year 2027; the motion passed unanimously. Subcommittee members said the FY2027 schedule gives time to finish engineering and align the item with town budgeting after an attempt to place it on the current warrant missed publication deadlines.
Retail fuel pricing: The fuel subcommittee presented inventory, regional-price comparisons and customer-purchase data that showed Nantucket’s Jet A retail price sits below several peer airports. The subcommittee recommended replacing subjective, manual price-setting with an automated formula that sets a fixed margin above blended cost; the commission adopted a $4.90-per-gallon fixed margin for Jet A and tasked finance to update retail pricing automatically each time a fuel delivery changes the airport’s blended tank cost. Commissioners said the change should reduce losses from lagging price updates when market prices move quickly.
Fuel revolver increase: Finance staff requested increasing the airport’s fuel revolver (short-term borrowing used to support fuel purchases) from $8.5 million to $11 million to absorb higher global fuel prices. The commission approved that increase by unanimous roll call; staff noted the request will also be reviewed by the town finance committee.
Staffing and housing: The fuel subcommittee recommended modest seasonal staffing increases (from 10 line staff and two supervisors to 11 and three supervisors) to support ramp operations and additional fuel deliveries. Staff said budget room exists, union rules permit adding positions as additional slots rather than new classifications, and Thompson House/dorm recommissioning should free beds for seasonal hires.
Next steps: Staff will proceed with budgeting and implementation tasks, finalize the pricing formula in coordination with finance, and return with updates. The fuel-farm expansion scope remains in the larger NEPA/MEPA task order; staff said they are seeking state and FAA guidance on segmenting that work to expedite an earlier construction path if possible.
