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Airport advisory board recommends draft FY27 budget, flags $22,000 shortfall
Summary
The Salem City Airport Advisory Board voted to recommend the draft fiscal 2027 airport budget to the city council after staff outlined a $22,000 operating shortfall and a $140,500 city match for a grant-funded hangar and pavement project.
The Salem City Airport Advisory Board voted to recommend the draft fiscal 2027 airport fund budget to the Salem City Council after staff said the fund faces an operating shortfall of $22,000 and will require use of prior reserves or expenditure reductions to balance.
"This slide is the summary of revenues and expenditures for the airport fund," Stacy, the staff presenter, told the board while walking through a column-by-column comparison of prior years, the current budget and the proposed FY27 figures. She said revenue sources include hangar fees, grants and fuel sales and that the draft shows year-end revenues of $74,000 and expenditures of $74,000, noting the plan uses $35,000 of prior-year reserves (compared with $47,000 previously budgeted).
Stacy also told the board staff expects a round of grant funding for a box hangar and pavement; the proposed local match is $140,500. "If approved, we will be pulling this amount from the city's capital improvement fund to transfer to the airport fund," Stacy said.
Board members pressed staff on how to cover a projected $22,000 deficit. Stacy said the board can either reduce expenditures or use prior-year fund balance. Richard Bell, who participated in the discussion, explained the difference in options: "If you chose to pull it from the airport fund, that 140,000, that's going to deplete that to about 15,000 in your fund balance," a scenario members said they wanted to avoid if possible.
Other operational costs noted in discussion included an anticipated $1,400 increase in liability insurance and roughly $5,000 in typical fuel sales revenue. Staff identified a one-time gate-related equipment expense booked this year that reduces the equipment maintenance line in the FY27 budget by about $7,500.
After discussion the Chair moved to forward the draft budget to the city council with the recommendation to proceed; the board approved the motion by voice vote. The recommendation and the draft budget will be forwarded to the Salem City Council for its review and action.
