Commission recommends FY27 midcycle airport budget, plans to dip into reserves for Southfield parking

The Santa Barbara Airport Commission voted May 20 to recommend the Airports midcycle FY27 operating and capital budget, which includes a proposed one-time transfer of $7,000,000 from the Passenger Facility Fund to support terminal and capital improvements and a plan that temporarily draws reserves with a projected payback by 2030.

Business manager Jonathan Abad presented the budget and figures to the commission, saying, "We're proposing revenue of $44,800,000 for fiscal 27," and listing operating expenses, capital transfers and an anticipated net operating result. Abad told commissioners the airport expects to set aside roughly $4.6 million for anticipated FAA grant matches and that $1.3 million in capital expenditures will be fully funded by the airport for FY27.

Commissioners focused on the short-term reserve impact of advancing the Southfield parking project. Staff described the airport's reserve structure as three components (10% budgetary contingency, 15% disaster reserve and a capital reserve based on a multi-year average), and acknowledged the plan projects reserves dipping roughly $8.1 million this year and being about $5,000,000 below policy in the near term before recovering toward policy by about 2030.

Abad and Director Hastert said the long-term parking project is expected to produce about $1,000,000 net per year once online, helping the airports fiscal position. The presentation also identified PFAS testing and remediation, storm-related repairs and taxiway maintenance among near-term capital and special-project costs.

After discussion, the commission moved, seconded and unanimously voted to recommend the proposed FY27 midcycle operating and capital budget to the city for further processing. Staff said the recommendation will proceed through the city's budget review and any required council approvals.

The commission adjourned at the end of the meeting.