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Finance Committee OKs temporary $2.5M increase to airport fuel revolving fund
Summary
The Finance Committee unanimously approved a temporary $2.5 million increase to the airport fuel revolving fund, raising the spending cap to $11 million through the end of the fiscal year to cover recent spikes in aviation fuel prices.
The Finance Committee voted unanimously Thursday to increase the airport’s fuel revolving fund cap by $2.5 million, raising the spending limit to $11 million through the end of the fiscal year.
The request came after town staff said worldwide fuel costs for aviation had surged this spring. "Aviation fuel has seen a 45% increase in jet A and a 23% increase in 100 low lead," finance staff said while asking the committee to approve the temporary increase so the airport would not have to draw on operating funds if deliveries push spending above the current cap.
The committee’s discussion focused on the difference between cash flow and municipal accounting rules. Committee member Joe Wright asked whether the cap change would affect the airport’s profitability on fuel sales. Finance staff explained that on a pure cash basis the airport still receives and pays for fuel, but the cap functions as a spending authorization: once the cap is reached, further fuel purchases would be charged to the airport’s operating budget, potentially producing an end‑of‑year deficit that reduces retained earnings. That reduction, staff said, could force the airport to use retained earnings to fund capital work normally paid from the fuel revolver.
Committee members also asked whether the requested amount was sufficient. Staff confirmed the $2.5 million increase is intended to cover operations through June; they noted the committee previously increased the cap in January and had left roughly a $500,000 buffer in that adjustment.
Joe Wright moved to approve the increase; Jeremy Bloomer seconded. The committee recorded unanimous affirmative votes and the motion carried.
Art Gasparro, who joined the meeting’s public information session, briefly thanked the committee for supporting the fuel revolver increase.
The committee did not adopt any additional conditions for the increase and directed staff to include related warrant language and technical edits ahead of the April 30 meeting.
